As Ontario gears up for municipal elections on October 27, OREA is highlighting what we feel is a major issue, the possibility of a second land transfer tax.
As municipalities across the province look for new revenue tools and taxes, one consideration has become a municipal land transfer tax (MLTT). This tax would be imposed on all home purchases, on top of the already existing provincial land transfer tax, raising the cost of homeownership.
In the spring we shared research about the loss of revenue and employment that an MLTT has caused the City of Toronto. Now it’s time to focus on what an MLLT could mean for other cities. New research conducted by Altus Group Economic Consulting, shows that an MLTT would greatly impact Ottawa, London, Mississauga, Hamilton and Thunder Bay. Dampening their economic activity and killing jobs.
According Altus’ report, Potential Economic Implications of the Municipal Land Transfer Tax in Selected Ontario Municipalities, the impact on some of our largest cities totals more than $1 billion and a loss of more than 10,000 jobs. It breaks down as follows:
Loss of $543 million in economic activity Loss of $482 million in economic activity
Loss of 3,558 jobs Loss of 3,157 jobs
Loss of $184 million in wages and salaries Loss of $163 million in wages and salaries
Loss of $342 million in economic activity Loss of $270 million in economic activity
Loss of 2,240 jobs Loss of 1,771 jobs
Loss of $116 million in wages and salaries Loss of $92 million in wages and salaries
Loss of $60 million in economic activity
Loss of 392 jobs
Loss of $20 million in wages and salaries
For the full Altus report, and to find out how you can participate in the campaign, visit donttaxmydream.ca . Don’t forget to check out our campaign video and share it via social media.