Parkdale Neighbourhood Land Trust and Gentrification Tax Action launch a voluntary Gentrification Tax campaign to redirect home sale profits towards local, deeply affordable housing.
WHY TAX GENTRIFICATION?
When selling their houses, local homeowners profit from the collective efforts of every member of the community. We believe that some of the profits made in home sales should benefit the neighbourhood.
Toronto needs a Gentrification Tax to:
- raise money to create locally managed accessible housing
- reduce local rents by increasing the supply of rental units
- end the displacement of low-income people
- limit housing speculation
- stop individuals from removing collective wealth from their neighbourhood
HOW COULD IT WORK?
A Gentrification Tax would: 1) tax the increase in value of a home (after inflation), and 2) decline in percentage over a set number of years (for example, 10 or 20). The longer a homeowner stays in the community, the less they pay. The declining nature of the tax dis-incentivizes people from reselling quickly, and makes flipping houses for profit untenable. Instead of selling, owners would be encouraged to rent their homes, opening up new rental units, bringing down the cost of rent. Most significantly, income from the tax would be channeled directly to local land trusts and cooperatives, ensuring that the profits of gentrification would remain in the neighbourhood to create and maintain deeply affordable housing.
How much tax should be paid? The average freehold townhome bought in Toronto in November of 2014 for $631,019 could be sold in 2020 for $1,099,454, an above inflation increase of $409,528 in six years. How much of this windfall belongs to the community?
House Bought 2014: $631,019
House Sold 2020: $1,099,454
Gains $409,528 (above inflation)
5% of Gains $20,476 reinvested in the community
15% of Gains $61,429 reinvested in the community
25% of Gains $102,382 reinvested in the community
50% of Gains $204,764 reinvested in the community
Join Toronto art and design collective, Gentrification Tax Action (GTA) and Parkdale Neighbourhood Land Trust to help model, develop, and promote a Gentrification Tax for Toronto. Sign up here to stay connected:
A VOLUNTARY GENTRIFICATION TAX CAMPAIGN
If you have sold or plan to sell a property, pay a percentage of the increase in the value of your house to the Neighbourhood Land Trust. Donations are tax deductible, repositioning tax dollars to build accessible housing in Parkdale. Your payment of thevoluntary Gentrification Tax to the Neighbourhood Land Trust will serve as the initial down payment for the creation of deeply affordable housing, unlocking further funding from government sources.
Gentrification Tax Action (GTA) is a collective of artists and designers formed to campaign for a Gentrification Tax. Current members of GTA: Sameer Farooq is an artist and documentary filmmaker; Kika Thorne is an artist; Jane Mah Hutton teaches landscape architecture at the University of Waterloo; Adrian Blackwell is an artist and urbanist, teaching at the University of Waterloo. GTA recognizes that the land on which all Toronto homes are built is in Treaty 13 negotiated with the Mississaugas of the Credit. It is land taken from Anishnabeg, Chippewa, Haudenosaunee and Wendat peoples. Affordable housing ensures homes for people whose ancestors have lived here for over 13,000 years, as well as for newcomers, whether indigenous, immigrant, settler or refugee.