Toronto land transfer tax undermines housing affordability
TORONTO, Sept. 14 /CNW/ - On behalf of first-time home buyers and all
others who aspire to the dream of affordable homeownership, Bob Finnigan,
president of the Building Industry and Land Development Association (BILD) is
urging Toronto taxpayers to reawaken to the threat of a $300 million housing
tax grab by the City of Toronto.
Reacting to the launch of Toronto Mayor David Miller's fair taxes
web-site Finnigan was incredulous asking "what's fair about retroactive double
taxation?" Finnigan warned that the Mayor is not content with taxing home
buyers on a go forward basis but is planning to whack buyers who purchased
condos long before he even dreamed up his misguided tax scheme.
"The Building Industry and Land Development Association is fundamentally
opposed to double taxation, particularly to a tax which targets one class of
taxpayers (home buyers) to pay for services benefiting the entire community,"
Finnigan revealed that Mayor Miller clearly intends to retroactively tax
approximately 25,000 home buyers awaiting occupancy of their new homes or
condos. As proof, he cited additional motion 1A from the July 16 Council
debate, moved by Mayor Miller, "to develop a land transfer tax rebate to all
home buyers in the amount of up to $2,000 on the condition that the purchaser
demonstrate to the satisfaction of the City solicitor that the purchaser and
vendor entered into a purchase and sale agreement for the property prior to
July 18, 2007."
"We were frankly shocked when we saw the actual wording of this motion.
How can the City possibly conceive of retroactively taxing home buyers in this
fashion? These are individuals who purchased as far back as late 2004 through
2005, 2006 and so far this year that bought with their eyes wide open as to
the expected closing costs. Now the City wants to change the rules in the
middle of the game and if there ever was a tax grab, this is it," Finnigan
Finnigan cited the example of a purchaser who bought a $380,000 condo in
early 2006, before the City of Toronto Act was passed and long before the City
proposed the land transfer tax. That buyer was originally looking at
approximately $4,200 in land transfer tax. Under Mayor Miller's scheme, the
buyer is facing an $8,400 tax tab less $2,000 (net $6,400) resulting in a
$2,200 retroactive tax grab.
"The Mayor would never dream (we hope) of sending homeowners retroactive
property tax bills so why is he hammering innocent homebuyers, the vast
majority of whom are first-timers who are scrimping and saving to make their
down and monthly payments and furnish the home of their dreams, however
modest? What's fair about that," Finnigan wants to know.
Finnigan said the only solution is for councilors to resist re-opening
the debate prior to the October 22nd date, await the outcome of the provincial
election as planned, assess the parties commitments on up-loading and use the
meantime to look at truly fair ways of spreading the tax burden and minimizing
the tax load through real and meaningful, not sensational, expenditure
With more than 1,500 members, BILD, formed through the merger of the
Greater Toronto Home Builders' Association and Urban Development
Institute/Ontario is the voice of the residential land development, home
building and professional renovation industry in the Greater Toronto Area. We
are proudly affiliated with the Ontario and Canadian Home Builders'
For further information:
For further information: Cynthia Malagerio, Manager of Communications,
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