5 June 2018

“Housing speculation is pushing prices higher,” – the platform says. “We will introduce a new speculation tax that will not be limited to foreign buyers only, it will affect foreign and domestic speculators who don’t pay tax in Ontario.”

Today, Ontario charges foreign real estate buyers with only a one-time 15% speculation tax.

The NDP proposes to keep it and add another one, applying to both foreign and domestic homeowners.

It should be noted that the NDP speculation tax is based on the B.C. model, although the province is dealing with the risk of a class-action lawsuit from out-of-province homeowners.

British Columbia had to slow down the tax after it hit its own residents, including owners of vacation properties.

According to Ontario NDPers, they will make sure their variant of the tax will not affect family cottages and won’t lead to negative consequences for a rental stock.

“It will not apply to properties that are rented out,” – an NDP spokesman noted. “It will concern real estate which has been vacant for a long time already”.

The new tax will be effective in all regions where the NRST is applied: Toronto, Barrie, Brant, Brandford, County of Dufferin, Durham Region, Guelph, Haldimand County, Halton, Hamilton, City of Kawartha Lakes, Niagara, Northumberland, Orillia, Peel Region, Peterborough and region, County of Simcoe, Waterloo, County of Wellington, and York Region.