The city levy for parkland dedication is currently 10% of the land value at the start of construction. This is different than the purchase price, as four years of wrangling with the city to rezone the site can add value to the land.
Here’s an example. An acquisition price of $14 million in 2014, then four years later after the rezoning the parkland levy land appraisal is $25 million. The 10% levy is $2.5 million not $1.4 million. This example is based on a 250-unit building. The tax per unit is $10,000. Any new parks added around the building? Nope.
The current tax is outrageously high and incredibly unfair. It doesn’t benefit the homebuyer. Any new imposed increase is going to be 100% absorbed by the consumer. Affordable housing? The city of Toronto is the biggest culprit for driving prices higher! This cleaning out of the home buyer has to stop.