Say NO to another Home Owner Tax!
Did you know that an introduction of another land transfer tax in Ottawa could mean adding an average of $3,292 on to the average buyer’s closing costs?! This could make the dream of owning a home that much harder. Join in our fight to stop the spread of a Municipal Land Transfer Tax (MLTT). Visit www.donttaxmydream.ca and spread the word! #NOtoMLTT
New research by the Ontario Real Estate Association (OREA) shows a significant loss of jobs and economic activity in the City of Ottawa if a second (municipal) land transfer tax were imposed on local home buyers. OREA is undertaking a province-wide information campaign to educate voters and politicians in advance of the upcoming municipal elections about the economic perils of a new municipal land transfer tax (MLTT) – as it is known in Toronto – being considered in some major Ontario cities.
“Municipalities across Ontario are looking to the province for new revenue tools or taxes,” says Costa Poulopoulos, president of OREA. “One of the tools being considered is a second (municipal) land transfer tax on home buyers, similar to the tax imposed by the City of Toronto. This tax carries a huge cost. Ottawa can’t afford to lose thousands of jobs because of a municipal land transfer tax.”
According to the report, Potential Economic Implications of the Municipal Land Transfer Tax in the Selected Ontario Municipalities, conducted by Altus Group Economic Consulting, the economic impacts of a MLTT on London, Mississauga, Hamilton, Ottawa and Thunder Bay totals more than $1 billion and a loss of more than 10,000 jobs. In Ottawa alone, the effects are predicted as follows:
- Loss of $543 million in economic activity.
- Loss of 3,558 jobs.
- Loss of $184 million in wages and salaries.
“A second land transfer tax would be extremely detrimental to Ottawa,” says Randy Oickle, President of the Ottawa Real Estate Board. “The housing market in our city is one of the primary drivers of the local economy. Municipal leaders need to be aware that any additional tax will significantly reduce a buyer’s ability to afford a home. If a second land transfer tax were to be implemented, it would have a devastating impact to both the housing market and employment in Ottawa. It is not simply an additional revenue stream for the municipality.”
OREA’s campaign against the MLTT launched last week and will run through to election day on Monday, October 27th. The campaign will highlight the negative economic impacts of a MLTT on local communities.