Mississauga Backing off Land Transfer Tax...For Now
By Lucas on Dec 04, 2012
Last week, we wrote about the City of Mississauga’s plan to start charging a land transfer tax, one that would add thousands of dollars to the price of a new home in Mississauga. We felt that it was unfair, and illogical, since no new services were being added for new residents.
The other issue that we had was that the Region of Peel recently implemented significant increases in land development fees, which are charged to builders, and will no doubt affect affordability.
“We don’t provide a service when a piece of property is sold, so why would we be eligible to receive the fee?” said Ward 8 Councillor Katie Mahoney to the Mississauga News. “I don’t understand it and I can’t see the rationale.”
Recently, the Mississauga Real Estate Board issued the results of an Ipsos Reid poll in November 2012 that showed that more than 77 percent of those asked would be against a new tax. Not shocking, but a statement nonetheless.
“If levied at the same rate as the Province and the City of Toronto, a Mississauga Land Transfer Tax would cost the buyer of an average Mississauga detached home about $10,000, payable upfront. It is unfair to expect people like downsizing seniors, or young growing families who need more space, to pay so much more than their fair share,” said Ann Hannah, president of the Toronto Real Estate Board.
Yesterday, the City of Mississauga shelved the idea, but left the debate open, as the Large Urban Mayors’ Caucus of Ontario is also looking at the land transfer debate. They did not close the door on the idea, and that’s a scary thing.
There is no doubt that the city is experiencing some financial hardship, but it seems odd that the mayor and councillors would look to home buyers to help with that issue. If the city is lacking the proper funding to rebuild and add new infrastructure, infrastructure that everyone uses, it would make more sense for everyone in the region to pay for the services, not just new home owners.
We will have more information on this topic as it becomes available.
