Loyalist Township is calling on the provincial and federal government to redistribute land transfer tax (LTT) and GST to municipalities for sustainable infrastructure funding.
A report by staff mentioned current sources of municipal revenue, including property taxes and user fees, are not enough to meet increasing demands for infrastructure investment.
Currently, Ontario collects LTT on property transactions in municipalities all across the province. The revenue generated is not directly shared with municipalities. This also goes for GST, which is collected by the federal government on property transactions.
The request notes that this funding would allow municipalities to better plan for, and invest in long-term infrastructure initiatives that support local economic growth and improve the quality of life for residents. It mentions the distribution should be structured to provide predictable and sustainable funding.
