Toronto, December 4. 2015 (CINEWS): There was palpable fear that all 444 municipalities across Ontario would be allowed to impose a land transfer tax along the lines of Toronto.
In some communities, it could drag the sluggish property market down even further.
Municipal Affairs Minister Ted McMeekin says he consulted a wide range of groups following last year’s local elections and found there was no call for a municipal land transfer tax.
He says local governments are looking for new revenue tools, but adds there will be no extension of a land transfer tax to any municipality beyond Toronto.
Deputy PC leader Steve Clark had campaigned hard against giving cities and towns the ability to create a land transfer tax, which he warned would hit home buyers with a bill averaging an extra $10,000 on closing.
The Ontario Real Estate Association and several mayors also had warned the province that a land transfer tax would hurt home sales and the economy. Already there are fears that the land transfer fee would affect prices of homes in cities like Mississauga and Brampton if and when these cash-strapped cities lookfor ways to pad their budgets. Ꮠ