Concerns the province may allow a municipal land transfer tax

Land transfer taxes could be on the rise if a provincial move to give municipalities the opportunity to charge the tax goes through.

North Bay Real Estate Board President Mark Lepage says there’s already a provincial land transfer tax of $2,050 on the sale of a $230,000 home.

That’s the average price of home locally.

Lepage says the tax could double to $4,100 under the plan, which would take $2.4-million out of the local economy.

He also points out the average sale generates about $55,000 in incidental spending, on items like carpets, appliances, paint and lawyers. He says that adds up to about $12.4-million a year and North Bay can’t afford to lose that.

Lepage says they’re encouraging residents to let city hall and their MPP know implementing a municipal land transfer tax isn’t acceptable.

In terms of the local real estate market, he says sales in North Bay are about 14 percent better than last year, but he points out last year was not a good year and values are flat.