Ontario REALTORS® are launching a campaign today in support of Bill 104, the Tax Fairness for Realtors Act, 2017. If passed, Bill 104 would permit Realtors to form personal real estate corporations. The Ontario Real Estate Association (OREA) has launched a website RealtorTaxFairness.ca and is encouraging Realtors to write to their MPP in support of the Tax Fairness for Realtors Act.
“Realtors are pillars of their communities and hard working small business owners,” said Tim Hudak, OREA CEO. “Personal real estate corporations will help them offer more services to clients, invest in new technology and create jobs in their community.”
A 2015 study by the Centre for Spatial Economics (C4SE), found that personal real estate corporations would have a positive economic benefit for the province. Specifically, C4SE’s report found that PRECs would create between 33-89 net new jobs annually and contribute between $9 to $25 million annually to Ontario’s GDP.
Realtors are not allowed to form personal real estate corporations (PRECs) due to a technicality in the Real Estate Business Brokers Act, 2002. Currently, other regulated professions in Ontario, including accountants, lawyers, health professionals, mortgage brokers, insurance agents, architects and engineers, can all form personal corporations. British Columbia, Alberta, Saskatchewan, Manitoba, Quebec and Nova Scotia also permit PRECs.
“OREA is working to make sure Ontario Realtors are treated fairly,” said Ettore Cardarelli, President of OREA. “Most professions in Ontario have the ability to form personal corporations, but not Realtors. This legislation is about giving Realtors the same business rights as everybody else.”
The bill was reintroduced last week by PC MPP Todd Smith and co-sponsored by NDP MPP Catherine Fife & Liberal MPP Mike Colle. Bill 104 will be voted on by the Legislature at second reading on March 23rd. OREA is coordinating a call for action encouraging Realtors to contact their local MPP in anticipation of the vote. Realtors can send an email to their MPP by visiting RealtorTaxFairness.ca.