Mayor Rob Ford urged Toronto Real Estate Board members on Friday to help him persuade city councillors to start phasing out the ?dreaded? municipal land transfer tax.
The tax, which costs buyers of the average home about $10,000, generated $344.5 million for civic coffers in 2012. That was $56.2 million more than projected, due to the higher number and value of homes sold in the city last year.
Ford?s appearance Friday drew a big media contingent wanting to ask about the crack-video scandal, but he entered the Sheraton Centre meeting room by a rear door and left via the kitchen, without speaking to reporters.
In his luncheon address to about 100 people, Ford said he was committed to reducing the tax by 10 per cent, or $34 million, as an initial move toward eliminating the tax altogether.
He had campaigned against the levy when running for mayor in 2010 but hasn?t achieved any reductions. He warned that some city councillors don?t want to give it up.
?I need your help to convince these councillors to start eliminating this land transfer tax. Unfortunately, they?re addicted to spending that land transfer tax, absolutely addicted to it. They want to keep it and they want to keep spending the millions of dollars it brings in.?
Last week at a budget committee meeting, Councillor Adam Vaughan recommended putting this year?s unexpected increase in the tax, or $56.2 million, into housing repairs at the Toronto Community Housing Corp.
?If we are to get at the (repair) backlog, we have to put more resources into public housing,? Vaughan told the committee.
However, committee members refused to put Vaughan?s request to a vote, and the chair, Councillor Frank Di Giorgio, advised Vaughan to make a pitch next month to the executive committee, which is chaired by Ford.
Ford told the realtors he has asked Di Giorgio to put together a tax phase-out plan.
The real estate board understands it?s unrealistic to expect the tax to be eliminated in one fell swoop, said spokesperson Von Palmer.
Palmer said the city has enough financial flexibility to adopt a 10 per cent cut and give up $34 million in revenue next year.
?I think now is a responsible time to start rolling that back,? he said. ?It?s unfair. What additional services do you get over and beyond the next person for paying that tax? There?s none.?
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