The city of Calgary voted on February 23rd, 2009 to introduce a Land Transfer Tax that would force potential home buyers to pay 1% of the purchase price of the property being sold. This would cost the average home buyer over $4000.
Thankfully, this was voted down - but only 8 to 7.
What the public need to realize, is this kind of tax could and will prevent some home buyers from having the ability to purchase a home. For the first time buyer who saves up their 5% down payment would need an additional several thousand dollars. For many, that would push them back more than a year to save up the additional funds.
Granted, these kind of taxes are used in other parts of the country but just because other cities use them does not make it right. The city is targeting a very small group of people to supply additional funds for municipal services for entire communities as well as affordable housing. I strongly am against singling out such a small group of people to pay for such things.
The Calgary Real Estate Board lobbied against this tax before it was voted upon and you can count on us for voicing our concerns in the future if the city tries this again!
