Toronto to tax luxury home sales, asks province for sales tax amid fiscal crisis

Toronto City Council voted in favor of a new surtax on sales of high-value homes while asking the provincial government for sales tax revenue to help it deal with a looming budget crisis.

Mayor Olivia Chow said despite several actions taken by council at Wednesday’s meeting, the city needs provincial and federal a*sistance to deal with budget pressures estimated at $46.5 billion. dollars over the next decade.

City Council voted Wednesday to ask the province to use its power to introduce a municipal sales tax in Toronto or give the city a portion of its existing harmonized sales tax.

The vote also saw council adopt the new tiered municipal land transfer tax rate for homes valued at $3 million and above and lift the $5 per hour cap on on-street parking.

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

City staff have also been asked to report to council ahead of 2024 budget discussions on several other possible revenue tools, including a tax on non-residential parking spaces and on foreign home buyers.