Bradford's Land Transfer Tax Cut Sparks Fiscal Alarm
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Mayoral candidate proposes scrapping taxes on homes up to $1.1 million, potentially creating a $300 million hole in city coffers.
Mayoral candidate Brad Bradford has proposed a plan to combat the housing crisis by scrapping the Municipal Land Transfer Tax (MLTT) on home sales valued up to $1.1 million. According to reporting from CBC Toronto, Bradford's team estimates this policy would cost the city $300 million.
Toronto is currently facing funding gaps exceeding one billion dollars as it begins annual budget deliberations. The MLTT is projected to generate $850 million in revenue this year, and funds from the tax have increasingly been used to support the city's operating budget and basic services.
Bradford argues that the tax deepens affordability problems and keeps buyers on the sidelines. Daniel Steinfeld, president of the Toronto Regional Real Estate Board, told CBC Toronto that the tax adds $36,000 in upfront fees to the average home purchase, which costs just over $1 million, and supports a reassessment of the charge. York University public policy professor Zac Spicer noted that while the tax impacts the housing market, the proposal involves significant trade-offs.
To offset the loss, Bradford's team suggests extending the timeline for paying off infrastructure projects and creating a public water company to generate potential dividends. However, CBC Toronto notes that former city manager Peter Wallace warned in 2015 against an over-reliance on the MLTT, describing it as a "volatile" revenue source.