The state of Ontario has informed the public that it is raising the non-resident speculation tax on homes purchased by foreign nationals from 20% to 25%.
Finance Minister Peter Bethlenfalvy says the move makes Ontario’s tax rate the highest in Canada and seeks to discourage foreign speculation.
The Progressive Conservative government recently increased the non-resident speculation tax from 15% to 20%, and expanded it to cover the whole province, instead of just the Greater Golden Horseshoe area of southern Ontario.
Municipal Affairs and Housing Minister Steve Clark is also set to introduce a piece of housing legislation as the government sets out to hit a target of 1.5 million homes being built in 10 years.
Clark strongly believes that raising the tax is another step toward addressing Ontario’s housing crisis.
The government’s previous housing bill was one to give the mayors of Toronto and Ottawa so-called strong mayor powers that would allow the heads of those cities to veto council votes that conflict with building housing.
From the budget this year, non-resident speculation tax was projected to bring in $175 million in this fiscal year.
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