TRREB is applauding Toronto City Council for listening to the concerns we expressed, and deciding to not implement an increase to the Municipal Land Transfer Tax (MLTT) on homes priced over $2 million. City Council directed staff to conduct a comprehensive study of all revenue tools and options for Toronto, instead of just focusing on the MLTT.
We told City Council that a potential MLTT increase could further constrain the supply of homes for sale in Toronto, thereby exacerbating housing supply and affordability challenges, especially for those purchasing modest homes.
The proposal was defeated at the Budget Committee and could have been tabled during City Council’s deliberations on the City’s 2021 budget. Had it been approved, the portion of the property value over $2 million would have been subject to a 3.5 per cent MLTT rate, up from 2.5 per cent – a 40 per cent increase. An increase to the MLTT was NOT approved by City Council; therefore, Toronto MLTT rates remain unchanged.
City staff will be studying various revenue tools, including a long-term plan for the MLTT, and will report back to City Council in July 2021. TRREB looks forward to providing input on numerous aspects of this issue, including adjustments to the MLTT rates and the first-time buyer rebate to reflect inflation on housing prices since the MLTT was first implemented in 2008.
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