A minister in Ontario says she’s concerned about a potential $20 billion windfall in property sales, but wants the federal government to do more.
“We have to take a look at that,” Kathleen Wynne told reporters Tuesday as she announced an Ontario Property Assessment Tax Credit to help homeowners avoid the high costs of home sales.
Wynne says the tax credit is available for home buyers who pay $150,000 or more in taxes and the credit is only available for properties that are less than 2,000 square feet.
Wynne also says the provincial government is offering incentives to help with property tax bills.
Wynne’s government will begin the process of creating the Ontario Property Assessed Value Tax Credit next month.
Ontario is the only province to provide a property assessment tax credit for home purchases under the program, but only in cases where the property is worth less than $150.1 million.
It is a rebate that comes with a maximum tax of 30 per cent and a maximum property tax bill of up to $3.1 billion.
The Ontario government says that the credit can be used to help pay for new construction, and also to offset mortgage payments, property taxes, and repairs.
Wynne says the credit will help homeowners who make less than two-thirds of the median income and pay property taxes at the average rate of 5.2 per cent, or $55,852.
Ontario’s property assessment is based on factors including the value of the home, whether the property was built in the past 10 years, the location of the property and whether the house is attached to an apartment or condo building.
It is not available to people who make more than $200,000 and have a home valued at $2.7 million.
In response to questions from the media, Wynne said that the Ontario property assessment credit will “create jobs, create jobs, that will help more Ontarians.
That’s why I’m pushing for this,” Wynne said.
I’m also confident we can get more people into the system, and I think we will.” “
I am confident we will be able to create jobs.
I’m also confident we can get more people into the system, and I think we will.”
Wendy also said the province will offer incentives for homebuyers who want to sell their home in Ontario, but not in Quebec.
“This is an opportunity for us to help people get into the market and be successful,” Wynne added.
“There are opportunities for people in Quebec to sell a home.
And there are opportunities to help us with home-ownership.”
She did not say if the Ontario government would offer tax breaks for people who buy homes in Quebec, which has a lower property assessment rate than Ontario.
Ontario’s Liberal government has faced criticism from conservatives over the timing of the tax credits announcement.
A provincial review found that the province had only received more than 4 per cent of the $20-billion in home sales in Ontario since 2007.
That was before the province introduced a Property Assessments Tax Credit in March of that year.
“There is a very high likelihood that a significant number of people who were not eligible for the property assessment credits will be eligible for a tax credit,” the provincial review said.
The provincial government also said it would review a number of tax credits offered to buyers of new homes and condos.