17 Dec A modest proposal for reforming Toronto’s Land Transfer Tax.
Original article via Spacing Toronto. Click here to read.
Few topics have pre-occupied Toronto’s budget watchers more over the past decade than the city’s land transfer tax (LTT). People love it or hate it.
For its advocates, the LTT was the revenue stabilizer the city needed at a time when each budget cycle began with a yawning gap between expenditure demands and money available to pay for them. This tax was also a shining example of the city’s mature exercise of its new powers under the 2006 City of Toronto Act.
For others, however, it represents a dangerous addiction to a revenue source that will certainly dry up when the housing market stalls, as well as a ‘bad tax’ that increases housing prices and makes Toronto uncompetitive relative to its neighbours.