Although the Province of Ontario may allow municipalities to charge a municipal land transfer tax to collect more revenue, local politicians are divided. Orillia Mayor Steve Clarke says that implementing such a tax could potentially hurt economic development and create a disincentive for somebody wanting to buy a house, land or business.

Barrie Mayor Jeff Lehman said a municipal land transfer tax could offset property taxes and has indicated that it's too early to know if a tax is right for Barrie. "I guess the question would be, as a homeowner, would you rather pay a little more when you buy your home, if it means you pay less on a monthly or annual basis, or the other way around", Lehman said.

The Barrie and District Association of Realtors is advocating against the tax, warning it would cost you thousands more to buy a home. It would be significant for first time buyers who already struggle to cover closing costs. 

Toronto has charged a municipal land transfer tax since 2008, after receiving approval from the province. If Barrie charged a similar rate, homebuyers would pay an additional $6,900 on a home priced at the 2014 average of $348,329.

While Mayor Lehman understands the real estate community's concern, he has indicated that it is one of several tools under consideration and that it would be discussed at length before anything happened.

To read more about the Municipal Land Transfer Tax and it's effect on local real estate, click here

To read more about the province wide effect of the added tax, click here