With a deputation to the City of Toronto’s Budget Committee today,
Toronto’s REALTORS® are asking Council to consider the impact of the Toronto Land Transfer Tax on the
City’s economy.
“The current state of the economy requires every level of government, including the City, to take action,” said Maureen O’Neill, President of the Toronto Real Estate Board (TREB). “Not only does the City need to consider what it can do to help, but also what it is already doing that is hurting the economy. Clearly, the Toronto Land
Transfer Tax is hurting the economy.”
TREB is telling the City that the re-sale housing market is critical to Toronto’s economy and that the best action the City can take for this sector is to roll back the Toronto Land Transfer Tax. A recent study conducted by the C.D. Howe Institute and Economics Professors from the University of Toronto determined that the
Toronto Land Transfer Tax is having a significant impact on Toronto’s real estate market, reducing housing sales by 16 per cent and values by 1.5 per cent in 2008 alone.
A separate recent study, conducted for the Canadian Real Estate Association, determined that every re-sale housing transaction in Ontario generates over $33,000 in economic spin-off activity on things like renovations, furniture, and appliances. Based on these studies, TREB estimates that the Toronto Land Transfer Tax has
already cost the City’s economy about $200 million in consumer spending. The Tax has also reduced Toronto home owners’ net worth by $3.5 billion in lost equity when selling their homes, with less credit available to them from equity lines of credit, thereby reducing spending and economic activity.
“Buying and selling homes is crucial to our economy; thousands of jobs depend on it,” said O’Neill. “It was encouraging to see the City recognize this for new housing with its recent action on development charges, and we hope it will do the same for re-sale housing by reversing destructive tax policies, like the Toronto Land
Transfer Tax.”
According to the study conducted for the Canadian Real Estate Association, one out of every 100 jobs depends on spending associated with re-sale housing transactions. This means that approximately 14,000 jobs in Toronto and 30,000 jobs in the GTA depend on re-sale housing transactions. TREB believes that, by impacting the real estate market, the Toronto Land Transfer Tax is risking these jobs.
TREB is calling on the City to focus its efforts on options recommended by the Mayor’s Fiscal Review Panel last year.
“The Mayor’s Fiscal Review Panel made it clear that the City has choices other than taxes. According to the Panel, there are, literally, hundreds of millions of dollars in savings and innovative options available to the City,” said O’Neill. “Toronto taxpayers deserve to know what actions have been taken to implement the recommendations of the Mayor’s Fiscal Review Panel.”
Greater Toronto REALTORS® are passionate about their work. They adhere to a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 28,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board. Greater Toronto Area open house listings are now available on www.TorontoRealEstateBoard.com.
Source: Toronto Real Estate Board
Thursday, February 19, 2009
Tuesday, February 10, 2009
REALTORS® Call for a “Home Owners’ Budget” From City
In advance of the release of the City of Toronto’s recommended 2009
Operating Budget tomorrow, Toronto’s REALTORS® are calling on the City to do its part for the economy by making home owners and buyers a priority in the City’s budget.
“We have seen governments at all levels taking action on the economy, and we’re hoping that the City will do its part too. We’re looking to the City to make this a home owners’ budget,” said Maureen O’Neill, President of the Toronto Real Estate Board (TREB). “The housing industry is critical to Toronto’s economy. It generates billions of dollars of spending and creates thousands of jobs. One of the best
things that the City can do for the economy is to roll back the Toronto Land Transfer Tax.”
A recent study conducted by the C.D. Howe Institute and Economics Professors from the University of Toronto determined that the Toronto Land Transfer Tax is having a significant impact on Toronto’s real estate market, reducing housing sales by 16 per cent and values by 1.5 per cent.
A separate recent study, conducted for the Canadian Real Estate Association, determined that every re- sale housing transaction in Ontario generates approximately $33,425 in economic spin-off activity on
things like renovations, furniture, and appliances. Based on these studies, TREB estimates that the Toronto Land Transfer Tax has cost the City’s economy about $200 million in consumer spending and has reduced Toronto home owners’ net worth by $3.5 billion in lost equity when selling their homes, and less credit available to them from equity lines of credit, thereby reducing spending and economic activity.
“City polices impact the housing sector. It was encouraging to see this recognized recently with action on development charges. We hope City Council will also recognize the impact of the Toronto Land Transfer Tax,” said O’Neill.
TREB is calling on the City to use its 2009 Operating Budget process to continue implementing recommendations made by the Mayor’s Fiscal Review Panel one year ago.
“The City has fiscal options. The Mayor’s Fiscal Review Panel pointed out that the City should be able to find $150 million in budget savings this year. Now, more than ever, it is important for the City to move in this direction, instead of options that reduce economic activity, like the Toronto Land Transfer Tax,” said
O’Neill.
REALTORS® look forward to providing input during the City’s 2009 Operating Budget consultations.
Greater Toronto REALTORS® are passionate about their work. They adhere to a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 28,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board. Greater Toronto Area open house listings are now available on www.TorontoRealEstateBoard.com.
Source: Toronto Real Estate Board
Operating Budget tomorrow, Toronto’s REALTORS® are calling on the City to do its part for the economy by making home owners and buyers a priority in the City’s budget.
“We have seen governments at all levels taking action on the economy, and we’re hoping that the City will do its part too. We’re looking to the City to make this a home owners’ budget,” said Maureen O’Neill, President of the Toronto Real Estate Board (TREB). “The housing industry is critical to Toronto’s economy. It generates billions of dollars of spending and creates thousands of jobs. One of the best
things that the City can do for the economy is to roll back the Toronto Land Transfer Tax.”
A recent study conducted by the C.D. Howe Institute and Economics Professors from the University of Toronto determined that the Toronto Land Transfer Tax is having a significant impact on Toronto’s real estate market, reducing housing sales by 16 per cent and values by 1.5 per cent.
A separate recent study, conducted for the Canadian Real Estate Association, determined that every re- sale housing transaction in Ontario generates approximately $33,425 in economic spin-off activity on
things like renovations, furniture, and appliances. Based on these studies, TREB estimates that the Toronto Land Transfer Tax has cost the City’s economy about $200 million in consumer spending and has reduced Toronto home owners’ net worth by $3.5 billion in lost equity when selling their homes, and less credit available to them from equity lines of credit, thereby reducing spending and economic activity.
“City polices impact the housing sector. It was encouraging to see this recognized recently with action on development charges. We hope City Council will also recognize the impact of the Toronto Land Transfer Tax,” said O’Neill.
TREB is calling on the City to use its 2009 Operating Budget process to continue implementing recommendations made by the Mayor’s Fiscal Review Panel one year ago.
“The City has fiscal options. The Mayor’s Fiscal Review Panel pointed out that the City should be able to find $150 million in budget savings this year. Now, more than ever, it is important for the City to move in this direction, instead of options that reduce economic activity, like the Toronto Land Transfer Tax,” said
O’Neill.
REALTORS® look forward to providing input during the City’s 2009 Operating Budget consultations.
Greater Toronto REALTORS® are passionate about their work. They adhere to a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 28,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board. Greater Toronto Area open house listings are now available on www.TorontoRealEstateBoard.com.
Source: Toronto Real Estate Board
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