A New Energy Tax Targets Home Sellers in Ontario

In Ontario: a new tax is being implemented to home sellers. As if they didn’t have enough taxes to pay already. Let’s just hope this new bill doesn’t reach us in Quebec anytime soon. Here is the complete article from the Canadian newswire:

The McGuinty government today gave third and final reading to Bill 150, the Green Energy Act, which, when implemented, will impose significant new costs on home sellers in Ontario. The new tax comes in the form of an energy audit fee that must be paid by home sellers prior to a single family home being sold.

The new audit fee is only applicable on single-detached, semi-detached, houses, townhouses and fourplexes. Owners of high-rise condominiums, and all other forms of non-residential real estate, are exempt from the energy audit provision.

“Single family home sellers are being unfairly targeted by home energy audits,” explained Ms. Aunger, President of the Ontario Real Estate Association (OREA). “If the benefits of going green are shared by all Ontarians, then why has the provincial government targeted single family home sellers to pay the costs?”

This is the third tax aimed specifically at real estate transactions in the last three years.

First, the government of Ontario passed the City of Toronto Act, which allowed the city to impose the first ever municipal land transfer tax in Canada.

Earlier this spring, the Minister of Finance announced that the provincial sales tax would be harmonized with the goods and services tax, resulting in thousands of dollars in increased taxes on resale transactions and tens of thousands of dollars in additional tax on new homes in Ontario.

Finally, energy audits could cost home sellers additional thousands in lost equity.
“Dalton McGuinty is using Ontario homeowners as his own ATM,” said Ms. Aunger. “Public policy should promote homeownership – not raise costs for homebuyers and erode equity of home sellers.”

Posted by:  Deya Bautista - Affiliated Real Estate Agent working as part of the McGill Immobilier team. Specializing in condos and revenue property in the metropolitan area of Montreal. For buying or selling contact Deya at: 514.917.7889

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