CD Howe / U of T Study Shows Land Transfer Tax Having Impact – HELP Fight

December 10, 2008 -- Supported by a recent independent analysis showing the impact of the Toronto Land Transfer Tax (details below), TREB is continuing the fight to eliminate this unfair tax. This is a long-term effort and YOU CAN BE THE DIFFERENCE (See below to help).

Land Transfer Tax Has Reduced Sales

The analysis of the Toronto Land Transfer Tax was conducted by respected economists from the C.D. Howe Institute and the University of Toronto. It determined that this tax is directly responsible for reducing sales in the City of Toronto by 16 per cent. According to the study, this means approximately 3,500 lost transactions of freehold homes in Toronto in the first year of the tax. Including condominiums, TREB estimates that the total impact could be approximately 5,000 lost transactions as a result of the Toronto Land Transfer Tax. The authors of the study carefully controlled for all other potential influencing factors, including broader economic trends, and are therefore confident that their results isolate the impact of the Toronto Land Transfer Tax.

Land Transfer Tax Has Impacted Economy

A separate study conducted for the Canadian Real Estate Association determined that every re-sale housing transaction pumps $33,425 of spin-off consumer spending into the economy on things like renovations, furniture, and appliances. This means that, by causing a loss of 5,000 sales, the Toronto Land Transfer Tax has cost the City’s economy about $170 million.

Help TREB Fight

The analysis expects the Land Transfer Tax to continue having a negative impact on Toronto’s real estate markets, which is why it is important for REALTORS® to fight this tax now and over the long-term. THE NEXT MUNICIPAL ELECTION WILL BE CRITICAL. TREB is getting ready and is coordinating REALTORS® that want to get involved.

There are many very valuable ways that YOU CAN MAKE A DIFFERENCE during the upcoming municipal election campaign. The first, and most important, step is to let TREB know that you want to be involved. If you would like to MAKE A DIFFERENCE, please LET US KNOW by contacting TREB’s Manager of Government Relations at mritacca@trebnet.com or 416-443-8000 ext. 8043. We will then keep in touch on how you can help.

Full Report Available

The full report on the Land Transfer Tax impact is available at the C.D. Howe’s web site here.

TREB News Release

View TREB’s News Release regarding the report.