recommended that the Government of Ontario reduce
the provincial Land Transfer Tax (LTT) rate by
0.5 per cent on all property value tax brackets to help
homeowners cope with the Harmonized Sales Tax
(HST). The recommendation, which is contained in
the association’s submission to the Standing Committee
on Finance and Economic Affairs, would save the
average homebuyer almost $1600.
“The HST is going to hit homebuyers and sellers
hard,” said Pauline Aunger, President of the OREA.
“Cutting the provincial LTT rate will help offset the cost of the HST while making homeownership
more affordable for all Ontarians.”
OREA’s submission also called on the provincial government to reign in program spending and
present a plan for balanced budgets and debt repayment.
“Running large deficits that contribute to the province’s ballooning debt is bad for real estate,”
said Barb Sukkau, Chair of OREA’s Government Relations Committee. “Large provincial
deficits lead to higher interest rates which make it harder for existing and future property owners
to get financing.”
To promote community revitalization and environmental protection, OREA’s budget submission
also called on the Government of Ontario to create a new property classification for brownfields
that are under remediation.
“Too many brownfields with great development potential sit idle,” explained Phil Nanavati, Chair
of OREA’s Ontario Commercial Council. “A new property classification for brownfields will reduce
an owner’s property taxes, making their site more attractive for remediation and development.”
OREA’s final recommendation in its budget submission asked the provincial government to make
the necessary regulatory changes to the Real Estate and Business Brokers Act, 2002 to allow real
estate salespeople to incorporate.
To read a copy of OREA’s budget submission click here.