TORONTO – Mayor Rob Ford announced Tuesday afternoon what he called the first step of phasing out the land transfer tax.
Standing beside budget chief Frank Di Giorgio, the mayor told a packed room at city hall he plans to cut the tax by five per cent – if he can get council’s support. City staff say the millions that would cut out of the budget would have to be made up by cutting staff or services.
“It’s no secret the land transfer tax works against the city’s long-term economic interest,” Ford said. “That’s thousands and thousands and thousands of dollars new homeowners would otherwise put into the economy.”
Di Giorgio said he took on the role of budget chief because he wanted to “tackle” the tax. But he admitted Tuesday this might be difficult to get through council.
The motion, which Di Giorgio will present to executive committee, will seek a five per cent cut in the tax. The tax generated $344.5 million in 2012. A five per cent cut would amount to approximately $17 million.
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Councillors have routinely cited the land transfer tax as a necessity.
But the mayor was adamant that if the “political will” existed, the city could find the savings to offset the loss the money.
“Small step in the right direction but we have to start somewhere,” he said. “I was elected to save taxpayers money and find efficiencies.”
Executive committee and city council would have to accept Di Giorgio’s motion before it can be enacted.
In Depth: Mayor Rob Ford
Ford also took the opportunity Tuesday to attack his council colleagues unwilling to accept his demand of a 1.75 per cent hike in property taxes rather than the estimated 2.5 per cent suggested by city staff.
“It’s only been a few weeks since city council took my powers and budget and away and councillors are already going back to the old ways,” he said. “Friends, we can do this but the political will has to be there.”
A property tax hike of 1.75 per cent and a five per cent cut to the land transfer tax would amount to approximately $35 million in lost revenue. Ford has not said where that money would come from.
The city manager’s office tells Global News that to achieve those numbers “cuts to staff and/or services” would be required.
The mayor only answered a few questions following his press conference and refused to apologize for insinuating a reporter is a pedophile in an interview with Conrad Black.
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