How does new housing and development support public infrastructure?
Developers and home builders pay several types of fees and taxes in order to develop and build new homes.
These fees generate billions of dollars in funding and tax revenue per year for the federal, provincial and municipal governments and are reinvested back into the communities in the GTA. As a part of the development process, the industry supports fair and equitable fees, taxes and charges to help support the communities in which they operate.
These fees are used to support:
- Infrastructure – roads, transit
andservices such as fire and police services.
- New housing developments – municipalities are able to recover their costs for planning new housing developments through permitting and approval fees
- Schools – education development charges, like the name suggests, support the building of new schools in the area.
- Parks – provided through contributions of land or cash-in-lieu payments to the municipality.
- Public art installations – the development and implementation of public art installations are supported by public art fees.
In addition, developers and home builders may be required to pay Section 37 fees. These are fees paid to municipalities in exchange for increased density, additional floors or other variances in a home builder’s plan. These fees are intended to be reinvested back into the local community.
Outside of these fees, the sale of new homes also includes the provincial land transfer tax, HST, and in the City of Toronto, the municipal land transfer tax.
Outside of these fees, the sale of new homes also attracts provincial land transfer tax, HST, and in the City of Toronto, municipal land transfer tax.