durhamregion.com This Week | Thursday, April 7, 2022 | 4 2022 Municipal Election Information Session Thinking of running for local office or registering as a third party advertiser in the upcoming municipal election? Attend the information session being held April 13, from 7 p.m. to 8:30 p.m., at the Regional Municipality of Durham Headquarters, 605 Rossland Road East, Whitby, Meeting Room LL-C (on the lower level) to learn about: the roles and responsibilities of elected officials and registered third parties the nomination process campaign finance rules and more Who should attend: Those considering running for municipal council or a school board, campaign managers, and those planning to register as a third party advertiser. For details visit whitby.ca/vote, email elections@whitby.ca or call 905.430.4315. 2022 Interim Tax Bill Due April 25 Residential, Farmland, Pipeline and Managed Forest Properties The second instalment of the Interim Tax Billing for 2022 is due April 25. Questions? Contact the Tax Division at 905.430.4304 or tax@whitby.ca. For more information on how payment can be made, visit whitby.ca/Tax 25 APRIL Help Donate Food For Those In Need The Town has set up locations for residents to drop off food donations in support of the local Salvation Army Food Bank. If you are able, visit a recreational facility or any Whitby Fire Hall between now and April 23 to drop off non-perishable food donations or donate online at sawhitby.ca Get Ready For Summer Camp Registration on April 13 Did you know you can now view and create your ACTIVENet Wish List for Town summer camp programs? Registration begins April 13 at 9 a.m. for: sports, technology and day camps Junior Firefighter Camp Counsellor in Training and more Sessions start Monday, July 4 and run all summer long! Learn more at whitby.ca/GetActive P: 905.430.4300 E: info@whitby.ca whitby.ca What You Need To Know This Week: I had a question from a client a week or so ago and I felt it was worth exploring. "I am planning on sell- ing the home I live in and heard the federal government may be taxing principal residences. Should I be worried?" During the last federal election, the idea of taxing principal residences was tossed around, mostly due to a report commissioned by the Canada Mortgage and Housing Corporation, a government entity. The former CEO of the CMHC denied in a tweet that they were planning on taxing homes Canadians live in. This report caused a shock wave across Canada. This, after the former CEO tweeted that "Glorification of home ownership is plainly elitist." It is understandable people are worried about losing one of two allowable tools used to help Canadians build nest eggs for the future. TFSAs are the other tool. Although a report was done to explore taxing principal residences, I feel that the government is focusing its efforts on tax- ing investors "flipping properties." When a homeowner "flips" a property, meaning that the in- tended use was to quickly turn the property over for a profit, the Canada Revenue Agency views this as business income, or a capital gain. Here is a local ex- ample. In my neighbourhood, a home sold this month for $1,380,000. It sold four months earlier for $1,090,000. Once you remove the costs to buy and sell, the net gain would be almost $200,000. This is the issue the government is concentrating on, and I agree fully. It comes down to intent; the buyer's intent when the home was purchased. A far more troubling report is one that suggested an "annual progressive surtax on homes over one million dollars." Given the values locally, the tax would look something like this. For homes valued between $1 and $1.5 million, an annual surtax of $408 and $2,118 for homes between $1.5 and $2 million. This tax would be payable yearly, or it could be deferred at a cost and paid later. By deferring, the $408 jumps to $1,021 per year and the $2,118 becomes $3,618 with interest. Given that the average detached home in Whitby is valued at $1,550,000, this means that along with the property taxes of about $6,000, the two taxes together would be around $8,000 per year. The reason behind adding new taxes to homeowners is to "reduce the tax shelter that incentivizes Canadians to rely more on rising home prices as a strategy for savings and wealth accumulation." When I first began my career selling homes in the mid 1980s, many of the people I worked with had pen- sions that allowed a workable lifestyle once retired. One of the shifts I have seen has been that fewer people are retiring with any employer-paid pensions, so people are relying on their home as the principal asset to fund retirement. Adding more taxation on staying in a home strips away some of the incentive of homes as investments. A retiree wishing to stay in the average Whitby home will pay over $20,000 in new taxes if they choose to remain in their home for a decade after retiring. This is punitive. Lindsay Smith is with Keller Williams Energy Brokerage and has been a Durham real estate broker for 36 years. He lives in Oshawa and can be reached at lindsay@buyselllove.ca. WILL MY DURHAM HOME BE TAXED WHEN I SELL IT? OPINION COLUMNIST LINDSAY SMITH ADDRESSES ISSUE LINDSAY SMITH Column FIND BREAKING NEWS DAILY AT DURHAMREGION.COM