The tax would have had to be approved by the provincial government. Pictured: Hamilton City Hall. Photo Credit: City of Hamilton/X.
A Jan. 15 report by City of Hamilton staff outlining how the municipality could go about trying to implement a Municipal Land Transfer Tax was shut down by the local realtors’ association, with Council ultimately deciding not to pursue the idea further at this time.
Hamilton City Council originally requested the report from staff in May 2024, seeking to understand what steps would be necessary to implement a land transfer tax, additional parking levies, and a municipal alcohol and tobacco sales tax.
The motion to request the report was brought forward by Councillor Maureen Wilson (Ward 1 – Chedoke-Cootes-Westdale) and seconded by Councillor Tammy Hwang (Ward 4 – Hamilton East), eventually passing on a 10-4 vote.
The potential new taxes were touted as a way to potentially reduce the property tax burden and cover the city’s increasingly high spending which some progressive councillors say is necessary to fund the city’s responses to climate concerns, homelessness, and the opioid epidemic.
Currently, a Hamilton-based Municipal Land Transfer Tax would have to be approved by the Government of Ontario since the Municipal Act does not allow the city to create additional taxes.
Toronto is the only city in Ontario that has a Municipal Land Transfer Tax since they are governed by the City of Toronto Act which allows them to use different revenue sources.
Nevertheless, Hamilton City Council could send a formal request to the province asking for a Municipal Land Transfer Tax, direct staff to build support from other municipalities, and engage with municipal advocacy groups.
At the Jan. 15 meeting, Council ultimately opted not to pursue the idea further at this time.
Hamilton’s local realtors’ association, the Cornerstone Association of Realtors (CAR), mounted a strong campaign against a new Municipal Land Transfer Tax in the days before Council received the staff report.
Cornerstone replaced the Realtors Association of Hamilton-Burlington in January 2024 after the organization merged with other local boards.
They launched a strong online campaign with posts shared across social media against the new tax.
Councillors also reported that they were sent numerous emails from residents opposing the tax and those opposed to the tax filled the City Hall gallery during the meeting.
Cornerstone also commissioned scientific polling through Abacus Data which found that 74 per cent of Hamiltonians believe a Municipal Land Transfer Tax would make housing even less affordable.
Indeed, the report from city staff suggested a tax structure identical to Toronto, meaning a two per cent rate on homes over $400,000-$2 million, with increasing rates for home prices higher than $2 million.
With Hamilton’s residential average price in December 2024 measured at $772,705, that would mean a Municipal Land Transfer Tax of $11,929 added to closing costs.
Given that there would already be provincial land transfer taxes of two per cent on that home, the total for all land transfer taxes for the residential average price in Hamilton would be $23,858 if a municipal tax was enacted.
Julie Sergi, Chair of Cornerstone, says, “This tax would effectively make homeownership less attainable in Hamilton, placing a disproportionate burden on prospective buyers.”
“With rising inflation, stagnant wages, and a competitive housing market, Hamiltonians are already struggling to afford homes. The last thing they need is an additional tax that will make achieving the dream of homeownership even harder.”
Back in May 2024 when Council first debated the idea, Councillor Mike Spadafora (Ward 14 – West Mountain) suggested that the city undertake “internal audits and reviews to see where we can save or become more efficient before we start looking at taxing our residents more than they’re already taxed.”
While Hamilton City Council is not pursuing any of the new tax ideas at this time, it remains to be seen if Councillors will bring the issue up again in the future.
Based in Hamilton, he reaches hundreds of thousands of people monthly on Facebook, Instagram, TikTok, and Twitter. He has been published in The Hamilton Spectator, Stoney Creek News, and Bay Observer. He has also been a segment host with Cable 14 Hamilton. In 2017, he received the Chancellor Full Tuition Scholarship from the University of Ottawa (BA, 2022). He has also received the Governor General’s Academic Medal. He formerly worked in a non-partisan role on Parliament Hill in Ottawa.
