Toronto City Council has passed a motion to hike the land transfer tax on home sales above $3 million as the city looks for additional revenue. <\/p>\n
The move means those buying a home worth $3-4 million will pay a 4.4 per cent Municipal Land Transfer Tax (MLTT). That amount will increase on a scale, with anyone buying a home worth more than $20 million paying an 8.6 per cent tax to the city. <\/p>\n
Chow said she is \u201casking luxury homebuyers to chip in more\u201d to make life more affordable for families in the city.<\/p>\n
\u201cIt\u2019s clear that the impact of our current economic uncertainty is not being evenly felt across our city. Many people are at risk of losing their jobs and finding it harder to make ends meet,\u201d Chow wrote in a letter accompanying the motion. <\/p>\n
\u201cSome continue to do very well. I\u2019m asking the 2% of buyers purchasing luxury homes far beyond what average Torontonians can afford to chip in more. Those who can afford five or ten million dollar homes can afford to pay their fair share.\u201d<\/p>\n
The motion passed with 17 councillors in favour and seven voting against it. <\/p>\n
The vote followed a heated debate between Mayor Olivia Chow and Coun. Brad Bradford on the council floor, with Bradford telling Chow, \u201cTorontonians are tired of you raising everybody\u2019s taxes all the time.\u201d<\/p>\n
Chow in turn attacked Bradford\u2019s record, accusing him of cutting TTC service while raising fares in 2023. <\/p>\n
Chow introduced the hike for more expensive homes back in 2023. She said the hike affected just two per cent of home sales in 2024, and brought in an additional $138 million for city coffers. <\/p>\n
But Coun. Stephen Holyday said while the tax may not hit many homes at the moment, it eventually will as prices increase. <\/p>\n
\u201cVery clearly, this is a tax meant to take money from someone that earned it and to give it to somebody else that didn\u2019t,\u201d he said. \u201cAnd you have to ask, why are we here as a municipal government? What are the services that we provide to the city and what is our role in society?\u201d<\/p>\n