Toronto, December 6, 2011

The poll was conducted by Ipsos Reid for the Toronto Real Estate Board (TREB) between November 17 and November 22, 2011.

“TREB supports the recommended 2012 Budget because it continues the process of bringing fiscal sustainability back to City Hall; however, while we support the direction of this Budget, we are pointing out that it does not begin the process of fulfilling Mayor Ford’s commitment to repeal the Toronto Land Transfer Tax in 2012. This is a commitment that is strongly supported by Torontonians,” said Richard Silver, TREB President.

The poll found that,

• 65 per cent of Torontonians continue to support Mayor Ford’s commitment to repeal the Toronto Land Transfer Tax. Even when asked to consider the City’s deficit and recent efforts to address it, public support for the repeal of this tax is at 57 per cent;
• Torontonians want to see respect for taxpayers during negotiations with City Unions: 67 per cent believe that City negotiators should seek concessions from the unions; 57 per cent would like to see an end to current job security provisions; and 54 per cent would support a lock-out if union representatives do not agree to concessions;
• in contrast to the public’s strong opposition to the Land Transfer Tax, 52% of Torontonians support increasing residential property taxes as part of the solution to addressing the City’s deficit and paying for services; and,
• 54%, a majority, believe that City spending on programs and services is cost-effective and efficient. This is an increase of 9 per cent , from 45 per cent to 54 per cent, since April, 2011 when Ipsos Reid last measured this sentiment for TREB, indicating an apparent shift in attitude.

“Notwithstanding the difficult decisions that City Council has faced with regard to the budget, Torontonians understand that the Land Transfer Tax is part of the problem because it unfairly forces home buyers and business owners to pay more than their fair share, costing the average Toronto home buyer more than $6,000 every time they move; it is an unpredictable revenue stream that goes up and down with the real estate market; and it makes the City less competitive than other GTA municipalities,” said Silver. “The Land Transfer Tax is simply a band aid that has delayed the true solutions to the City’s financial challenges.”

REALTORS® believe that sustainable solutions to the City’s financial challenges are a combination of cost reductions and fair revenue sources, like property taxes and user fees.

“TREB Members work with the public across the GTA, so they understand that the City’s Budget affects not only Torontonians but the entire region. Simply put, the City’s budget decisions affect where people live and work. You only need to travel along the DVP during morning rush hour to see the proof: as many people are leaving the City to get to their jobs as there are coming in,” said Richard Silver, TREB President.

“Toronto businesses face the highest commercial and industrial property tax rates. Making business property taxes more competitive will allow the property tax base to grow, providing long-term, reliable, revenue, which, ultimately, will benefit residents by relieving pressure on existing taxpayers and improving quality-of-life in Toronto and the entire GTA by keeping people and jobs close together, thereby reducing traffic congestion,” said Silver.

REALTORS® are encouraged with the direction of the 2012 Budget and, along with the public, are calling for fiscal reform to continue at City Hall.

“REALTORS®, and the public, believe that City Council has made progress in bringing respect for taxpayers back to City Hall. We strongly believe that moving ahead with repealing the Land Transfer Tax, continuing to reduce costs, and using fair revenue sources is the right way to continue to move forward,” said Silver.

These poll results were gathered from 401 residents of the City of Toronto, yielding a margin of error of +/- 4.9 percentage points 19 times out of 20.

Greater Toronto REALTORS® are passionate about their work. They are governed by a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Over 32,000 TREB Members serve consumers in the Greater Toronto Area. The Toronto Real Estate Board is Canada’s largest real estate board.

 

REALTORS® comments were in response to a recent City Finance staff report indicating that the Toronto Land Transfer Tax is expected to generate higher revenue than what was budgeted for 2011.

“What goes up, also comes down. For years, REALTORS® have been warning the City that the Land Transfer Tax is an unpredictable revenue stream because it is based on the number, and value, of real estate transactions, which are very difficult to predict in any given year,” said Richard Silver, President of the Toronto Real Estate Board. “City staff’s recent budget variance report proves how difficult it is to budget based on unpredictable revenue like the Land Transfer Tax. The unpredictability of the Land Transfer Tax might not be a problem when times are good, but what will the City do if real estate markets cool in the middle of its budget cycle and the tax brings in less than expected?”

REALTORS® believe that responsible fiscal management is the only long-term solution to the City’s financial challenges.

“The Toronto Land Transfer Tax is not part of the solution; it is part of the problem. It is a crutch that has delayed the true solutions to the City’s financial challenges, which are a combination of reducing costs and using fair revenue sources, like property taxes and user fees” said Silver

REALTORS® believe that the Land Transfer Tax is an unfair tax because it targets one segment of Torontonians, those purchasing a home or business property, to pay for services provided to all citizens. The Toronto Land Transfer Tax costs the average Toronto home buyer about $6,000 up front. When added to the provincial version of this tax, average Toronto home buyers face over $12,000 in land transfer taxes.

“The first requirement for any tax should be that it is fair. The Land Transfer Tax is far from fair. It forces someone buying a home or business property to pay thousands of dollars more to receive the same services that others receive without paying this tax. That is simply unfair,” said Silver. “On the other hand, property taxes and user fees are much fairer because they are paid by everyone who benefits from, or uses, City services. Property tax and user fee revenue is also predictable and reliable, unlike Land Transfer Tax revenue. Toronto residents also enjoy a very low property tax rate.”

REALTORS® are urging City Council to continue to move forward with reviewing all fair options for getting the City’s finances in order including cost reductions, user fees, property taxes, and efforts to grow its assessment base.

“One of the best ways for City Council to address its budget challenges is to grow the City’s property tax base. Toronto is the only GTA municipality with a second land transfer tax, which puts the City at a competitive disadvantage. Furthermore, the City’s business tax rates, which are much higher than the City’s residential tax rates, are uncompetitive compared to other GTA municipalities. The Toronto Land Transfer Tax and high business property taxes create a double whammy that discourages growth in the City’s property assessment base. Eliminating the Land Transfer Tax and making business property taxes competitive will help to attract new development and keep businesses in the City. Maintaining and growing the City’s property tax assessment base provides long-term, sustainable and reliable tax revenue.”

Toronto, September 21, 2011

“We are proud that the Toronto Real Estate Board was the only business organization that had the courage to go to City Hall and call for the fiscal restraint that so many Torontonians want and demand from City Council. We are proud to be a loud and strong voice in favour of sound and fair financial management from City Hall,” said Richard Silver, President of the Toronto Real Estate Board (TREB).

TREB presented its views to the City of Toronto’s Executive Committee on September 19, 2011. In its presentation, TREB told the Committee that City Hall must live within its means and that the Toronto Land Transfer Tax is not part of the solution to the City’s financial challenges.

“Questions from some City Councillors, after TREB’s presentation, made it evident that some Councillors who are not members of the Executive Committee would prefer to continue to use the Toronto Land Transfer Tax as a band-aid solution to the City’s financial challenges. Torontonians don’t want band-aids to the City’s financial challenges; they want long-term solutions,” said Silver.

After TREB’s presentation, some Councillors implied that the Toronto Land Transfer Tax has improved the City’s budget situation. TREB disagrees.

“Four years ago, many of the same City Councillors that are currently opposing changes at City Hall claimed that the Toronto Land Transfer Tax would solve the City’s financial challenges. Yet, here we are, four years after the City began collecting the Land Transfer Tax, and the City’s financial situation is the same, if not worse. Why? The answer is simple: the Land Transfer Tax was a band-aid, not a real solution. Like all band-aids, it needs to be removed,” said Silver.

Some Councillors,pointed to the current health of the real estate market as justification for keeping the Toronto Land Transfer Tax. TREB is pointing out that the real estate market can experience ups and downs.

“It is important to remember that the Land Transfer Tax is not a predictable revenue stream. The amount of revenue it generates is based totally on the activity of the real estate market. What will the City do if there is a downturn in the real estate market? Create yet another tax to balance the budget?” said Silver.

Some Councillors, questioned the relative influence of the Land Transfer Tax and municipal services on property transactions and values.

“Make no mistake: REALTORS® understand that municipal services play a critical role in our City’s quality-of-life. These services are important to our clients. That is precisely why we want the City to get its finances in order. Without long-term solutions to the City’s finances, the quality of the municipal services that matter to our clients will deteriorate,” said Silver. “While municipal services are important to property transactions and values, for the vast majority of people, price is still the first and, most important, consideration”.

The City of Toronto is the only municipality in the Greater Toronto Area that imposes a second Land Transfer Tax, in addition to the provincial Land Transfer Tax. TREB feels that a budget shortfall supported by a tax collected from a small group to provide services for all citizens is not sustainable in the long run. It is time to axe the tax and find a long term solution.

We look forward to the results of the Core Services Review by Toronto City Council.

September 16, 2011

Before I elaborate, I’d like to make a request: help yourself by going to www.NoHomeBuyingTax.com to send an email to City Council and tell them that City Hall needs to live within its means.  Tell them that City Hall needs to target waste, not home buyers.  Say no to the status quo.   

I understand that everyone is busy and, these days, it is difficult to find the time to take action, even on important issues like this, but a few seconds of your time today, could, literally, save you thousands of dollars of land transfer tax in your future home purchase.   City Council needs to hear from you so that they move forward with making City Hall live within its means, just like you do, instead of standing in the way of Mayor Ford’s promise to repeal the Toronto Land Transfer Tax. Some Councillors would prefer to keep this tax to avoid tough decisions on the City’s finances. To make it easier for you, we have set up a special web site, www.NoHomeBuyingTax.com, which allows you to send City Council your thoughts, in your own words, with one easy click.

Make no mistake, I understand that the decisions facing City Council are not easy. Home buyers and business owners want communities with a high quality-of-life, so REALTORS® understand the importance of municipal services; but getting the City’s finances in order is important to ensuring the City’s quality-of-life over the long-term.  The long-term vibrancy of our City depends on it. That’s why City Hall needs to re-think the way it operates, just like any household has to review its budget from time-to-time. Torontonians don’t want band-aids to the City’s financial challenges; they want long-term solutions.

It is no surprise to me that Mayor Ford was elected with an overwhelming mandate to make City Hall live within its means and to repeal the Toronto Land Transfer Tax.  He was, and is, supported by Torontonians who, for years, have been hollering that they are tired of wasteful spending at City Hall.  Unfortunately, there are some City Councillors who would prefer to maintain the status quo at City Hall, including the Toronto Land Transfer Tax, which is why it is so important for you to let them know what you think at www.NoHomeBuyingTax.com.

The Toronto Land Transfer Tax is paid up-front by the buyer when a property is purchased.  It costs the average Toronto home buyer about $6,000.  When added to the provincial version of this tax, average Toronto home buyers face over $12,000 in land transfer taxes, and it could be substantially more depending on the home.

When the City first proposed the Toronto Land Transfer Tax, REALTORS®, and the public, fought back and told City Council that it was unfair to be targeting home buyers and real estate transactions to solve the City’s financial problems.  Like then, we are continuing to tell them that they should target waste, not home buyers.  We hope that you will do the same. You can make a difference. Go to www.NoHomeBuyingTax.com and say no to the status quo.

Reprinted from the Toronto Sun

Follow TREB on www.twitter.com/TREB_Official, www.Facebook.com/TorontoRealEstateBoard and www.youtube.com/TREBChannel

Toronto, September 7, 2011 –

“We say no to the status quo. Torontonians elected this City Council with a clear mandate to get the City’s finances in order and change the way City Hall operates, including repealing the Toronto Land Transfer Tax. The public does not expect to see Councillors’ convictions crumble when decision time approaches,” said Richard Silver, President of the Toronto Real Estate Board (TREB).

REALTORS® are contacting City Council to tell them to move ahead with the City’s service review process and are calling on the public to also contact City Council by visiting www.NoHomeBuyingTax.com.

“The public spoke loudly and clearly in last year’s municipal election. It is clear that they want change from City Hall and that they want the Toronto Land Transfer Tax gone. We are making sure that the public is aware that now is the time for City Council to take decisive action to improve the City’s finances,” said Silver.

A recent public opinion poll conducted by Ipsos Public Affairs found that 75 per cent of Torontonians support Mayor Ford’s commitment to repeal the Toronto Land Transfer Tax. Even when asked to consider the City’s budget shortfall, the public’s support remains very strong, with 68 per cent indicating that City Council should follow-through with the repeal of the Toronto Land Transfer Tax.

“Torontonians want the Toronto Land Transfer Tax abolished; they don’t want excuses. Unfortunately, some City Councillors are still targeting home buyers and would prefer to keep this tax. Getting the City’s finances in order requires comprehensive efforts; it can’t and shouldn’t be done by relying on the Toronto Land Transfer Tax, which unfairly targets one segment of Torontonians: homebuyers,” added Silver.

REALTORS® are also telling City Council that the Toronto Land Transfer Tax impacts Toronto’s economy.

“The Toronto Land Transfer Tax is a job killer: economic analyses have shown that about 40,000 Toronto jobs rely specifically on the economic activity that is generated when people buy and sell homes in the City. For resale housing alone, spin-off spending related to home buying, on things like renovations and moving services, pumped $1.4 billion into Toronto’s economy last year,” said Silver.

REALTORS® also believe that getting the City’s finances in order is an important step to ensuring the long-term sustainability of Toronto’s quality of life.

“Home buyers want communities with a high quality-of-life, so REALTORS® understand the importance of municipal services. However, just as any household must review its budget from time-to-time, City Hall must get its finances in order,” added Silver.

Greater Toronto REALTORS® are passionate about their work. They are governed by a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Over 31,000 TREB Members serve consumers in the Greater Toronto Area. The Toronto Real Estate Board is Canada’s largest real estate board.

The poll, conducted by Ipsos Public Affairs, found broad public support for numerous issues that have long been supported by the business community, including reduced taxation, better fiscal management of taxpayer dollars, prioritizing municipal services and innovative options to deliver these services. 

It is not a surprise that the poll found support for reduced taxation. After all, there are not many people, or businesses, that like to pay more taxes; but, on specific taxes, the poll did find some interesting results, especially with regard to the Toronto Land Transfer Tax, which Toronto Mayor Rob Ford has promised to repeal.   According to the poll, an overwhelming majority of Torontonians, 75 per cent, support the Mayor’s commitment to repeal this tax.   Interestingly, the public’s support to repeal this tax remains strong, at 68 per cent, even when they were asked to consider this pledge in the face of the City’s expected, and large, budget shortfall. 

As business people, REALTORS® understand that the Toronto Land Transfer Tax is an unfair tax that hurts the economy.  This tax is paid by homebuyers and businesses when they purchase a property, and is charged on top of the provincial Land Transfer Tax. It costs the average Toronto home buyer over $7,000, and when added to the Provincial Land Transfer Tax, average Toronto homebuyers face almost $14,000 in land transfer taxes.  

The housing industry is a key creator of jobs and spending. In fact, a recent study conducted by Altus Group Economic Consulting for the Canadian Real Estate Association found that the average housing transaction in Ontario generates over $40,000 in spin off spending on things like furniture, appliances, renovations and financial and legal services. 

Unfortunately, Toronto’s Land Transfer Tax threatens the economic stimulus that comes from a vibrant real estate market. A study conducted by the C.D. Howe Institute found that Toronto’s Land Transfer Tax caused a 16 per cent reduction in re-sale housing transactions when it was first implemented, which, at the time was estimated to cost Toronto’s economy approximately $200 million in consumer spending. 

For these reasons, REALTORS® are encouraged that the Ipsos poll showed such strong support for Mayor Ford’s commitment to eliminate this tax. 

REALTORS® were also encouraged that the poll showed public support for numerous other municipal finance issues that have long been a focus of the business community, namely better municipal fiscal management, prioritizing municipal services, and considering innovative options to deliver these services.  In this regard, the poll found an interesting contrast between the City of Toronto and the rest of the Greater Toronto Area.  According to the poll, only 45 per cent of Torontonians believe that their municipal tax dollars are being spent efficiently.  In the rest of the GTA, satisfaction is much higher at 72 per cent. 

Interestingly, the City of Toronto has begun a review of its services which could go a long way to addressing these public concerns, which have also been shared by the business community for years.   Undoubtedly, this process will require some difficult decisions by Toronto City Council.  According to the Ipsos poll, the public appears to be ready for some of these decisions. Specifically, the poll found that, 

• 79 per cent agreed that downsizing of City staff through attrition should be considered;
• 79 per cent agreed that more public-private partnerships should be considered;
• 77 per cent agreed that contracting out selected services should be considered;
• 76 per cent agreed that pulling out of or eliminating some City agencies should be considered;
• 68 per cent agreed that imposing or increasing user fees should be considered; and,
• 59 per cent agreed that reductions and/or discontinuation of some services should be considered. 

As business people, when it comes to government policy, we can sometimes find ourselves trying to convince not only the government of our viewpoints, but also the public.  So, it is extremely encouraging when we see eye-to-eye with the public on government policy.  Clearly, when it comes to municipal finance issues in the GTA, businesses and the public are speaking with one voice.

Repreinted from the Toronto Sun 05.08.2011

Like the 5% Goods and Services Tax  when we first saw it, the 13% HST make us consider being criminals. Do I pay everyone in cash and save 13%?  Have we encouraged another underground or barter system?

For many the move from 5% to 13% will push them over the top. The Ontario Liberal Government , should have softened the blow by reducing the HST when it was launched and my bet is that the Provincial  Tories  will run and win by reducing the HST as has been done in British Columbia .

In the mean time…enjoy the photos of our new bathroom…and thanks to Mark Trumbull our great contractor.

Part of yesterday’s discussion focused on the HST and the building anger and resentment across the Province.

My thoughts: Whether it was the right thing to do or not, the presentation of the tax by the Ontario Liberal Government  will be their undoing next October. Earlier in the year, I voiced my opinion to Dwight Duncan , Minister of Finance but to no avail. I have always felt that the Liberals did not make a case for what the added funds generated by the HST would be used for and also in not reducing the 13% to a lower amount to soften the blow on the Ontario Consumer. In not doing either they showed great arrogance and have treated the Ontario Taxpayer like a child. For that attitude they will lose the upcoming election and will have no one to blame but themselves.

Tim Hudak , the leader of the Conservative Opposition in Ontario  is now in a great position to win the next election. He can and will promise to reduce the HST. He is quite impressive, looks you in the eye and asks questions that show you he is concerned about the taxpayer and the Ontario economy. He spoke at yesterday’s luncheon and was very direct, succinct and stuck to a very strong message.

It will be an interesting 11 month’s ahead but in the end I am convinced that we will have a Conservative Provincial Government in the fall of 2011.

Your thoughts?

Your thoughts??

About 93 per cent of all homes sold in Ontario are not subject to an additional tax amount under the HST. 

It’s important to note, the HST is not charged on resale homes.  

In addition it is not charged on:

• home insurance  
• mortgage interest costs

 HST is charged on:

• real estate commissions
• legal fees
• new homes

 (The full list of what changes and what doesn’t change is available on the website (23 languages),  PDF format and for free download as a mobile application. )

 There are also many tax credits and incentives available that benefit homebuyers: 

• New housing rebate
• New rental housing rebate 
• Providing up to $1,000 for families (including single parents), or up to $300 for single people, in Ontario Sales Tax Transition Benefits. 
• Creating the new Ontario Sales Tax Credit that gives each member of your family up to $260 a year.
• Increasing the energy and property tax relief provided to low- to middle-income people by 70 per cent.
• Delivering an additional $500 a year to help senior homeowners pay their property taxes. 

For more information about the HST visit ontario.ca/modificationfiscale (FR) or www.ontario.ca/taxchange (EN).