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Toronto City Council · 2020-01-29 · 2020.MM14.6

The filed record

Review of Municipal Land Transfer Tax Rebate for First-Time Home Buyers - by Councillor Mark Grimes, seconded by Councillor Brad Bradford

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The decision

2020-01-29 · Toronto City Council · adopted

As filed

City Council on January 29, 2020, adopted the following: 1. City Council direct the City Manager to report to the April 1, 2020 City Council meeting on opportunities to provide first-time home buyers with greater relief from the Municipal Land Transfer Tax, including increasing the maximum eligibility threshold of $400,000 to reflect increased home prices in Toronto.

On the agenda

As the city filed it

The City of Toronto's Municipal Land Transfer Tax was implemented on February 1, 2008 and updated on March 1, 2017. There is a Rebate program available for eligible First-Time Home Buyers, but it only provides relief from the Municipal Land Transfer Tax up to a value of $400,000. Since the Municipal Land Transfer Tax was introduced, the cost of housing in Toronto has risen drastically and residents' housing choices have become increasingly restricted.

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The cost of both rental and ownership housing has increased significantly, while incomes have not kept pace. The average cost of a home in Toronto in early 2008 was around $331,000. By the end of 2019 that figure had more than doubled, to around $816,000. Many young people and first-time home buyers are choosing to purchase homes outside of Toronto to avoid paying the Municipal Land Transfer Tax. The people who help our City run - teachers, firefighters, paramedics, nurses, and Toronto Transit Commission drivers - can no longer afford to live in the City they serve. The City of Toronto's emerging HousingTO 2020-2030 Action Plan is working to address the full spectrum of housing needs in Toronto, and the Municipal Land Transfer Tax First-Time Home Buyers rebate should be part of the solution.

Staff recommended

Councillor Mark Grimes, seconded by Councillor Brad Bradford, recommends that: 1. City Council direct the City Manager to report to the April 1, 2020 City Council meeting on opportunities to provide first-time home buyers with greater relief from the Municipal Land Transfer Tax, including increasing the maximum eligibility threshold of $400,000 to reflect increased home prices in Toronto.

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