land transfer tax

FRPO campaigns for fairer taxation of renters

Monday, September 29, 2014

The Federation of Rental-housing Providers of Ontario (FRPO) is campaigning for fairer taxation of Ontario renters and tenants. According to the FRPO, individuals and families living in rental housing are being taxed at two to three times the rate of homeowners.

“There’s a legacy of inequity hidden in the tax rates of some of our largest municipalities: many rental buildings in Ontario pay municipal property tax rates that are two to three times what single-family homes and condominium owners pay,” says Scott Andison, President and CEO of FRPO. “Those higher taxes fall on tenants, who are on average making half the income of homeowners, but paying two to three times more than their fair share of taxes.”

The FRPO indicates that, with the exception of Ontario, every major city in Canada taxes tenants at the same rate as homeowners. Using facts and information, the association has developed a website, www.fairtaxfairrent.ca, to educate Ontario renters of taxation inequalities and direct them to the appropriate municipal and provincial government officials to request action.

“In Montreal, Halifax, Winnipeg and Vancouver, residents of a house or renters of an apartment pay the same tax rate,” says Andison. “Not so in the majority of Ontario municipalities, where this practice of taxing a tenant two to three times the rate of a homeowner cannot be justified. It’s time to take action and bring about fairness for tenants. After all, a home is a home regardless whether you rent or own.”

According to the association, the average tenant in a two-bedroom multi-residential unit in Ontario pays approximately $180 in property tax per month. This is $85 more than the tax paid for an equivalent home or condominium.