One of the consequences for Ontario if they do not move smartly to mimic BC’s 15% tax is offshore money which is now destined for Greater Vancouver’s residential real estate, may very quickly find the alternative market in Toronto very attractive.
Another reason Ontario is looking at a new tax could be to boost provincial revenues. Unlike B.C., Ontario is running an out-of-control multi-billion-dollar budget deficit, and the province is looking for any means to add to revenues.
John Andrew, director of Queen’s University real estate roundtable may have nailed it.
“You can bet the Minister of Finance of Ontario is really looking at that and thinking, ‘Wow, that would be great tax to have because it’s not even being paid by Canadian citizens.’”
With lots of promises of what this new tax will do to increase affordability and housing stock, I wonder if the B.C. government might have had the same view on added revenue for provincial coffers, with the coming election, that would not have to be paid by BC voters.