Does the Land Transfer Tax Impact Housing Sales?

New research, from the Institute of Municipal Finance and Governance (IMFG), examines the impact of the City of Toronto’s decision in 2008 to introduce a Land Transfer Tax (LTT). It argues that the decline in housing sales in 2008 was more of a function of the global recession that began that year, than the city’s decision to apply a LTT to real estate transactions.

Previous research has shown that housing sales declined in Toronto once the City imposed the land transfer tax. This study, however, concludes that the negative impact of the tax on housing sales was statistically insignificant…

Read the full paper here.

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