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Toronto real estate board raises concerns about possible vacancy tax

Click to play video: 'Province will allow Toronto to impose tax on vacant homes'
Province will allow Toronto to impose tax on vacant homes
April 20: Ontario Finance Minister Charles Sousa announced that the provincial government intends to allow the city of Toronto to impose a tax on vacant homes and rental units. – Apr 20, 2017

TORONTO – The Toronto Real Estate Board is urging the city to exercise caution regarding a possible vacant home tax.

The board says it’s worried there is not enough data or evidence to support the idea that a vacancy tax would increase the supply of rental housing.

READ MORE: Toronto Mayor John Tory suggests ‘vacant home tax’ is on the table

It urged the City of Toronto to take a measured approach to help to avoid any unintended consequences for the housing market and property owners.

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The board also raised the issue of private property rights and the administrative challenges.

READ MORE: As Toronto weighs housing tax, prices in Vancouver are creeping up again

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The Ontario government moved earlier this year to cool the Toronto housing market including the imposition to a foreign buyer tax and other changes.

The move followed the introduction of a tax on foreign homebuyers in the Vancouver region last year. The City of Vancouver also imposed a tax on vacant homes.

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