Can Ottawa be Far Behind?-

Who will be the First Ottawa Councillor to Propose a land transfer tax for Ottawa?

Toronto City council has voted 26-19 to endorse Mayor David Miller's two controversial new taxes, one covering land transfers and the other for vehicle registrations.

The October 22nd vote was considered crucial to Mr. Miller's future political clout, after he suffered an unexpected defeat in July when council opted to defer the measures, forcing him to order unpopular budget cuts. After a daylong debate and weeks of intense lobbying, councillors supported a compromise package, endorsed by prominent developers and the Toronto Board of Trade.

Under the compromise tax package approved by Toronto Council, the buyer pays a tax based on the purchase amount, using a scale similar to the existing provincial land transfer tax. It is based on a tax rate of 0.5 per cent on the first $55,000, one per cent on the value between $55,000 and $400,000 and 2 per cent on the amount greater than $400,000. First-time buyers of new or resale homes would receive rebates of up to $3,725, meaning those buying homes worth up to $400,000 pay nothing. The tax would not apply to sale agreements signed before Dec. 31, 2007.

The President of the Toronto Real Estate Board remains concerned about the potential impact of the second land transfer tax and disappointed that the public's opinion of the issue was ignored.