Holiday Closure

The OREA office will close for the holidays at 12 p.m. Tuesday, December 24th.  Normal business hours will resume on Thursday, January 2nd.  Happy Holidays!

Holiday Closure

The OREA office will close for the holidays at 12 p.m. Tuesday, December 24th.  Normal business hours will resume on Thursday, January 2nd.  Happy Holidays!

November 20th - 2014

Jobs, economic activity threatened by land transfer tax

A significant loss of jobs and economic activity in Mississauga, London, Hamilton, Ottawa and Thunder Bay will occur if a municipal land transfer tax is imposed in those cities

MLTT ad in Mississauga

MLTT ad in MississaugaA significant loss of jobs and economic activity in Mississauga, London, Hamilton, Ottawa and Thunder Bay will occur if a municipal land transfer tax is imposed in those cities, according to new research from the Ontario Real Estate Association (OREA).

A province-wide information campaign was launched during the municipal elections to educate voters and politicians about the economic perils of imposing a new municipal land transfer tax (MLTT). Although the municipal tax currently exists only in Toronto, other cities and towns are considering imposing such a tax as a way to generate revenue in their communities. The municipal tax is levied in Toronto on resale homes, and is added on top of the existing provincial land transfer tax, and is therefore a double or second tax.

The economic impact of a new tax of this kind in the five Ontario cities studied would total more than $1 billion and a loss of more than 10,000 jobs. These results are part of a study, Potential Economic Implications of the Municipal Land Transfer Tax in the Selected Ontario Municipalities. The research was conducted by Altus Group Economic Consulting for OREA. The effects in each city are predicted as follows:

Mississauga: Loss of $482 million in economic activity; loss of 3,157 jobs; loss of $163 million in wages and salaries.

London: Loss of $270 million in economic activity; loss of 1,771 jobs; loss of $92 million in wages and salaries.

Hamilton: Loss of $342 million in economic activity; loss of 2,240 jobs; loss of $116 million in wages and salaries.

Ottawa: Loss of $543 million in economic activity; loss of 3,558 jobs; loss of $184 million in wages and salaries.

MLTT ad in Thunder BayThunder Bay: Loss of $60 million in economic activity; loss of 392 jobs; loss of $20 million in wages and salaries.

“Municipalities across Ontario are looking to the province for new revenue tools or taxes,” says OREA president Costa Poulopoulos. “One of the tools being considered is a municipal land transfer tax on home buyers, similar to the tax imposed by the City of Toronto. This tax carries a huge cost – no Ontario city can afford the kind of job losses that Toronto has experienced because of the municipal land transfer tax.”

During the recent municipal elections, OREA organized a campaign to prevent the spread of the MLTT. The campaign, Don’t Tax My Dream, highlighted the negative economic impact of a potential MLTT on local communities. Advertisements on billboards and bus shelters, brochures, election events and a consumer website, were among the tools used to communicate the message, with particular emphasis on the five cities at the focus of the study. For more details, see the News Release in the News section of www.orea.com or visit the Government Relations section or visit www.donttaxmydream.ca.

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For more information contact

Ontario Real Estate Association

Jean-Adrien Delicano

Senior Manager, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246

Ontario Real Estate Association
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