Municipal Land Transfer Tax Increase NOT Implemented
TRREB is applauding Toronto City Council for listening to the concerns we expressed, and deciding to not implement an increase to the Municipal Land Transfer Tax (MLTT) on homes priced over $2 million. City Council directed staff to conduct a comprehensive study of all revenue tools and options for Toronto, instead of just focusing on the MLTT.
We told City Council that a potential MLTT increase could further constrain the supply of homes for sale in Toronto, thereby exacerbating housing supply and affordability challenges, especially for those purchasing modest homes.
The proposal was defeated at the Budget Committee and could have been tabled during City Council’s deliberations on the City’s 2021 budget. Had it been approved, the portion of the property value over $2 million would have been subject to a 3.5 per cent MLTT rate, up from 2.5 per cent – a 40 per cent increase. An increase to the MLTT was NOT approved by City Council; therefore, Toronto MLTT rates remain unchanged.
City staff will be studying various revenue tools, including a long-term plan for the MLTT, and will report back to City Council in July 2021. TRREB looks forward to providing input on numerous aspects of this issue, including adjustments to the MLTT rates and the first-time buyer rebate to reflect inflation on housing prices since the MLTT was first implemented in 2008.
TRREB Actions
TRREB took aggressive action to voice concerns on this proposal in advance of City Council’s debate, including:
Working with the Mayor’s Office to push back on this proposal.
Alerting the media to bring attention to the proposal.
Meeting with two-thirds of City Councillors last week to inform them of TRREB’s concerns.
Providing information to the City’s Finance staff, who are responsible for informing City Council prior to their debate.
Surveying TRREB Members for input.
Read TRREB’s concerns and arguments.
TRREB will continue to monitor municipal and provincial policies and initiatives with regard to land transfer taxes to help protect housing affordability. We’ll keep you updated.
