In a statement posted on its website, the TREB said that the proposed adjustments to the MLTT administration fee are unjust and injurious to buyers, who already have to contend with thousands of dollars in other MLTT payments.
“Between annual property taxes and the MLTT, City Hall has a huge impact on the cost of home ownership,” TREB president Mark McLean said, adding that the tax does nothing to stem the rising tide of greater house prices.
During its first implementation a few years back, the average cost of a home sat at $400,000. Back then, the MLTT’s highest tax rate wasn’t applied to homes with purchase values beneath the average price. However, the government’s neglect to adjust the relief measure has essentially rendered it useless, as the current average is now at $659,000.
The statement noted that the organization abides by Mayor Tory’s platform of working towards better tax equity. According to the TREB, this is in keeping with their goal of ensuring the reduction of City costs on homeowners.
“The proposed budget demonstrates Mayor Tory’s determined leadership by ensuring equity for taxpayers, specifically through bold, yet fair, property tax increases,” McLean said.
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Amid a backdrop of rising costs in home ownership and waning purchasing power due to a weak petro-currency, the Toronto Real Estate Board (TREB) recommended the abolition of the Municipal Land Transfer Tax (MLTT) last week (January 12).