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Toronto to tax luxury home sales, asks province for sales tax amid budget crunch

Click to play video: 'Council debates new revenue tools to bolster Toronto’s budget'
Council debates new revenue tools to bolster Toronto’s budget
WATCH: Toronto city council met for the first time since alarming budget projections were presented in the middle of what would normally be summer break. City staff have presented means to begin addressing some of the challenges to raise more city funds, but not all councillors are in favor of the changes. Matthew Bingley reports – Sep 6, 2023

Toronto city council voted to bring in a new surtax on high-value home sales while asking the provincial government for sales tax revenue to help tackle a looming budget crunch.

Mayor Olivia Chow says despite several steps council took during Wednesday’s meeting, the city needs help from the province and federal government to address an estimated $46.5 billion dollars in budget pressures over the next decade.

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City council voted Wednesday to ask the province to use its authority to bring in a municipal sales tax for Toronto, or to give the city a portion of its existing Harmonized Sales Tax.

The vote also saw council adopt the new graduated rate on the Municipal Land Transfer Tax for homes valued at $3 million and above and to lift a $5-per-hour cap for on-street parking.

It comes after council considered a major report penned by the city manager that says without new financial tools Toronto won’t be able to provide the services and investment essential to support growth.

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City staff were also directed to report back to council ahead of 2024 budget talks about several other possible revenue tools, including a tax on non-residential parking spaces and on foreign home buyers.

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