Toronto is contemplating another change to real estate taxes to help funnel more much-needed revenue into the City, and also to (hopefully) help somewhat alleviate our housing affordability crisis with more supply.

The levy, which the Executive Committee will be looking at on Tuesday before it goes to City Council next week, would target foreign buyers in particular.

Starting at 10 per cent of a purchased property's price, the municipal non-resident speculation tax would be in addition to the province's tax of the same name, which is now 25 per cent after Premier Doug Ford increased it twice in 2022.

Should be alot higher at least. Best case scenario: they shouldn't allow them to buy up properties until everyone has this housing issue sorted out for our own residents.

— Tina Bock- Gale (@TinaLouiseBG) October 26, 2022

Many may wonder, though, how the additional tax would be beneficial given that the federal government has barred overseas commercial enterprises and individuals from buying residential properties until at least the beginning of 2025 (which some have criticized as being ineffective for increasing affordability).

But, staff behind it say that even if that ban is extended, the City stands to earn some $9.6 million per year for those who qualify for newly more generous exemptions from the legislation.

If the ban isn't extended, this new levy could bring in an extra $15 million annually, hopefully from wealthy international speculators who are snapping up valuable Toronto real estate from the hands of actual residents (and turning a profit through renting it out, and/or if and when they sell it).

By comparison, the property tax hike controversially included in the city's 2024 budget — which is much higher than this proposed tax, set to increase a potential 16.5 per cent increase depending on federal funding — is expected to raise $490 to $580 million annually from those who live here.

And the city's very effective Vacant Home Tax, which is set to rise from one to three per cent for the 2024 tax year, should garner some $105 million each year from investors and multi-property owners who leave their secondary dwellings empty rather than rent them to local tenants.

Canada just changed the rules for the foreign home buyer ban and people are not amused https://t.co/OYXUyt9gzM #Canada

— blogTO (@blogTO) March 30, 2023

If approved, this new municipal non-resident speculation tax could be implemented as soon as 2025.

Other less-official suggestions for new property levies include a tax on real estate profits that goes down the longer you own a home, as recently pitched by local organizations Parkdale Neighbourhood Land Trust and Gentrification Tax Action.