Stuck in Place: The Effect of Land Transfer Taxes on Housing Transactions
Toronto’s Land Transfer Tax (LTT) has had a significant impact on home sales and household mobility in the city over the longer term, according to a report released today by the C.D. Howe Institute. In “Stuck in Place: The Effect of Land Transfer Taxes on Housing Transactions,” Benjamin Dachis finds the LTT has depressed sales volume by 16 percent, on average, since its introduction in 2008. “Municipalities across the country – especially those neighbouring Toronto – should beware Toronto’s example, where the imposition of a land transfer tax depressed housing sales, raised relocation costs and reduced household mobility,” said Dachis, a Senior Policy Analyst with the Institute.