Mississauga Looking at New Land Transfer Fee
By Lucas on Nov 19, 2012
Remember that pesky land transfer tax in Toronto? The one that has helped deter buyers from purchasing both low-rise and high-rise homes in the city? The one that adds upwards of $20,000 to the bottom line when moving to Toronto? Yup, that’s the one! Well, despite all the evidence that the tax has been a chief factor in the stalling of the Toronto real estate market, Mississauga Mayor Hazel McCallion is leading the charge to bring the tax to Mississauga.
As early as last month, McCallion was the lone voice for the new tax in Mississauga City Council, but that appears to be changing, as numerous councillors are warming to the idea of adding the tax to anyone who is looking to buy a new home in Mississauga.
So what’s the reason for the tax? Well, Mississauga, after years of running one of the tightest budgets in Ontario, is languishing with almost $1.5 billion in infrastructure deficit. Projects such as McCallion’s light rail transit project are struggling with financing, and it appears as though this new tax would be one of the simplest, and most financially rewarding funding models.
The tax does have its detractors. Councillor Nando Iannicca has been very vocal against the tax, suggesting that it’s unfair to anyone looking to call Mississauga home.
“To me, the reason for it is simple: a drowning man will even reach for the tip of a sword,” he told the Toronto Star. “What service does the resident get? New pipes into the home when they buy it? No, they get the old ones that were already there. It’s a tax on a lifestyle choice, the desire or need to move. It’s regressive and unfair.”
It’s an excellent point. This is an added fee for home purchasers, with an unknown value. And, as we reported in September, the Region of Peel just recently voted to double development fees to developers, which could result in an extra $20,000 to $30,000 on the price of any home.
We don’t know about you, but adding this new land transfer tax before they have the opportunity to experience the effects of the increased development fees might be unwise.
What are your thoughts on this new tax? Should Mississauga move forward with it?
Comment below.
