The Ontario government is considering expanding municipal powers to charge a municipal land transfer tax province-wide. Currently, the only option municipalities have at obtaining tax revenue directly is through property tax and user fees and municipalities seek to gain a greater number of revenue tools that they can control themselves. All other forms of taxation are legislatively prohibited. At present, municipalities such as Mississauga, Hamilton, London, Ottawa and Thunder Bay have been vocal about potentially adopting it should the Province give the go ahead. We have to look no further than the City of Toronto to see what that revenue model would look like.
Using the City of Toronto’s MLTT model for Oakville:
Average sale price of a property in October 2015: $865,985
Current Provincial Land Transfer Tax = $13,794.7
Municipal Land Transfer Tax = $13,044.70
Total: $26,839.40
Average sale price of a 4 bedroom detached home in 2015: $1,117,926
Current Provincial Land Transfer Tax = $18,833.52
Municipal Land Transfer Tax = $ 18,083.52
Total: $36,917.04
The Ontario Real Estate Association is leading a campaign against this Bill of Legislation and the MLTT. More information here: www.donttaxmydream.ca