Non-Resident Speculation Tax<\/a> (NRST) rate to 20 per cent, and will be effective as of March 30th on all agreements of purchase and sale entered into on or after that date. The increased tax will also be applicable provincewide, which the provincial government says will bolster efforts to dissuade non-resident investors from speculating on Ontario\u2019s housing market.<\/p>\nUntil the recent announcement, the NRST rate was set at 15 per cent and only applied to homes bought in Ontario\u2019s Greater Golden Horseshoe region by foreign nationals \u2014 those who are not citizens or permanent residents of Canada \u2014 foreign corporations and taxable trustees.<\/p>\n
\u201cYoung families, seniors and workers are desperate for housing that meets their needs. But a lack of supply and rising costs have put the dream of home ownership out of reach for too many families in the province,\u201d said Peter Bethlenfalvy, Ontario\u2019s Minister of Finance, in a press release.<\/p>\n
\u201cThat is why our government is adopting the most comprehensive Non-Resident Speculation Tax in the country. Our government is working to increase supply and help keep costs low for Ontario families and homebuyers, not foreign speculators looking to turn a quick profit,\u201d he added.<\/p>\n\n
Rebates for Canadian permanent residents and related exemptions will be available to eligible newcomers, the province said, and NRST relief eligibility will be focused on newcomers who are committed to \u201claying down roots in the province long-term.\u201d For purchase agreements entered into on or after March 30th, rebates will no longer be made available to international students and foreign nationals working in Ontario.<\/p>\n
In its announcement, the provincial government said that it is working with municipalities that are looking to implement a Vacant Home Tax, which has been introduced in the City of Toronto and is being considered in other communities. Vancouver introduced a one per cent empty homes tax in 2017<\/a> on properties that are unoccupied for six months of the year.<\/p>\nThe NRST tax increase precedes the unveiling of the next components of Ontario\u2019s housing supply action plan, which the province says is designed to build more homes.<\/p>\n
\u201cOur government is taking action to bring home ownership within reach for more hardworking Ontario families, and I look forward to sharing our plan in the near future,\u201d said Steve Clark, Minister of Municipal Affairs and Housing.<\/p>\n
\u201cThere is no silver bullet to solving the housing crisis. Addressing the housing supply crisis is a long-term strategy that requires long-term commitment and coordination with our partners and between all levels of government,\u201d he added.<\/p>\n
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<\/a>Photo:\u00a0nickjene<\/a> \/ Adobe Stock<\/em><\/p>\n