Ontario realtors recently launched a campaign in support of Bill 104, the Tax Fairness for Realtors Act, 2017. If passed, Bill 104 would allow realtors to form personal real estate corporations. The Ontario Real Estate Association (OREA) also launched a website, RealtorTaxFairness.ca, and is encouraging realtors to write to their MPP in support of the Tax Fairness for Realtors Act.
“Realtors are pillars of their communities and hard-working small business owners,” said Tim Hudak, CEO of the OREA, in a press release. “Personal real estate corporations will help them offer more services to clients, invest in new technology and create jobs in their community.”
A 2015 study by the Centre for Spatial Economics (C4SE) found that personal real estate corporations would provide a positive economic benefit for the province, creating between 33 and 89 net new jobs and contributing from $9 to $25 million to Ontario’s GDP annually.
At this time, realtors are not allowed to form personal real estate corporations due to a technicality in the Real Estate Business Brokers Act, 2002. Meanwhile, other regulated professions in Ontario, including accountants, lawyers, health professionals, mortgage brokers, insurance agents, architects and engineers can all form personal corporations. Ontario is also behind British Columbia, Alberta, Saskatchewan, Manitoba, Quebec and Nova Scotia, where realtors can form personal real estate corporations.
“OREA is working to make sure Ontario realtors are treated fairly,” said Ettore Cardarelli, president of OREA. “Most professions in Ontario have the ability to form personal corporations, but not realtors. This legislation is about giving realtors the same business rights as everybody else.”
The bill was reintroduced last week by PC MPP Todd Smith and was co-sponsored by NDP MPP Catherine Fife and Liberal MPP Mike Colle. Bill 104 will be voted on by the Legislature at second reading on March 23. OREA is coordinating a call for action to realtors to contact their local MPP prior to the vote. Realtors can contact their MPP through email by visiting RealtorTaxFairness.ca.