A coalition of Ontario developers, known as the Coalition Against New-Home Taxes (CANT), has urged federal, provincial, and municipal governments to reduce taxes on new housing. Comprising 18 developers, CANT aims to build 100,000 new housing units over the next decade. They propose eliminating the harmonized sales tax on new housing, similar to rental housing, and cutting the land-transfer tax for new construction homes. They also advocate for reducing municipal development charges to 2009 rates, adjusted for inflation.
Matt Young, president of Republic Developments and leader of the coalition, emphasized that these tax cuts would be directly passed on to homebuyers. The coalition's letter highlights that taxes now account for 29% of the cost of an average Toronto condominium, up from 12% in 2009, with development charges increasing by 1,200% over 15 years. The letter warns that high taxes on new homes could further strain housing supply and lead to job losses in the construction industry.
Municipalities are skeptical, concerned about the financial impact of reducing development charges. The Association of Municipalities of Ontario notes that a previous provincial law cutting these charges created significant funding gaps for infrastructure.
Despite differing views, municipalities and developers are encouraged to collaborate to address the housing affordability crisis. Young pointed out the current unviability of housing sales due to high costs and interest rates, which have significantly slowed down projects.
Recent data shows housing starts in Ontario dropped 44% in June compared to the previous year, exacerbated by rising material and labor costs.
Comments