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October 22, 2007
City approves land transfer and vehicle ownership taxes
  
Toronto City Council approved new land transfer and vehicle ownership taxes this evening.

“I am encouraged by the passage of these taxation measures - measures that we have had to take to ensure the fiscal stability of the City Toronto,” said Mayor David Miller. “But our work is not yet done. We will continue to seek relief from the provincial government by asking it to take back the costs of provincially mandated services and relief from the federal government by joining with voices of other municipalities seeking one cent of the GST and creating a properly funded National Transit Strategy.”

The land transfer tax takes effect on February 1, 2008. The vehicle ownership tax will be implemented in the fall of 2008. These two new taxes, combined, will generate $175 million in revenue in 2008. In future years, revenue is projected to grow to over $300 million annually.

The land transfer tax will work as follows:
- one-half of one per cent on the first $55,000 in property values
- one per cent on the next $345,000 in property values
- two per cent of the value residential units exceeding $400,000 for residential transactions
- one and a half per cent on the remaining value of up to $40 million and one per cent above that on commercial properties

A rebate of up to $3,725 will apply to first-time purchasers of homes. This means a full rebate for first time buyers of homes valued at $400,000 or less.

The personal vehicle ownership tax is set at $60 for cars and $30 for motorcycles, annually.

Toronto is Canada’s largest city and sixth largest government, and home to a diverse population of about 2.6 million people. It is the economic engine of Canada and one of the greenest and most creative cities in North America. In the past three years, Toronto has won more than 70 awards for quality, innovation and efficiency in delivering public services. Toronto’s government is dedicated to prosperity, opportunity and liveability for all its residents.

Stuart Green, Office of Mayor David Miller, 416-338-7119
Cindy Bromley, Finance and Administration Communications Manager, 416-392-4993


 

 

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