Doug Ford is vowing to cut the land transfer tax by 15 per cent every year for the next four years in an attempt to follow through on a campaign promise Mayor Rob Ford was unable to fulfill.

The tax, which was introduced in 2008, is levied on top of a provincial land transfer fee and can add thousands of dollars to the purchase price of new homes and condominiums.

It should be noted that first-time homebuyers receive a full rebate on the municipal land transfer tax provided they are purchasing a property for less than $400,000.

In 2013 the tax netted $344 million in revenue for the city and reducing it by 15 per cent would likely cost the city about $52.5 million in revenue in 2015 and about $164.5 million in revenue by 2018.

Speaking with reporters after meeting with the Toronto Real Estate Board Wednesday, Ford said he would use a projected $90 million in annual savings from privatizing garbage collection east of Yonge Street and $50 to $60 million in projected annual savings from consolidating purchasing within the civil service to help cover the lost revenue, calling his estimates “extremely conservative.”

“This tax hurts the economy, it hurts the housing market and worst of all it hurts our residents when they can least afford it,” Ford told reporters. “The land transfer tax adds to the already heavy burden of growing families, it hits our seniors on fixed incomes when they are forced to downsize and it hurts the young people that want to buy a home. This is an unfair tax.”

Mayor Ford campaigned on eliminating the land transfer tax in 2010; however in his four years in office he was unable to do so.

In December, Ford and Budget Chief Frank Di Giorgio did table a motion to cut the tax by 5 per cent, but council voted against the plan.

Asked about his brother’s failure to eliminate the tax, Doug Ford said that he has “learned” from the experience and believes that his plan is “realistic.”

“I understand where the councillors are coming from. They want to see a net-zero. They don’t want to see any services cut,” Ford said. “The money (for the cut) is going to be sitting on the table.”

Ford was joined at his news conference by representatives from the Toronto Real Estate Board, an organization that has been tireless in its criticism of the land transfer tax in recent years.

Though TREB did not formally endorse Ford, it did issue a press release in which it noted that it “supports Coun. Ford's commitment to phase out the Land Transfer Tax.”

“Let’s face it, the land transfer tax collects more money than is budgeted for. Last year the surplus on the land transfer tax was $40 million,” TREB's Chief Government and Public Affairs Officer Von Palmer told reporters. “Those dollars alone will pay for council to cut the tax by 15 per cent. This is doable.”

During his press conference Ford cited a 2013 report from Altus Group Economic Consulting that found that the municipal land transfer tax cost the city 38,278 home transactions over a five-year period, representing $2.3 billion in economic activity.

Fellow mayoral candidates, however, were quick to jump on Ford’s plan.

“It can’t be cut right now in my view because there is $350 million that comes from it and it is paying for much needed services, including public transit,” John Tory told reporters outside city hall. “You would obviously like to look at reducing any tax you can but you got to be able to figure out where you are going to get the money from before you make a promise like that.”

“I believe the land transfer tax is here to stay,” Olivia Chow added. “We can’t raise property taxes dramatically and if you eliminate $350 million (in revenue) it will be a huge whopping increase.”

Chow vows to build Finch LRT by 2020

Elsewhere on the campaign trail Wednesday morning, Chow held a press conference on Finch Avenue near Jane Street where she reiterated her commitment to building the Finch LRT by 2020.

Chow was joined for the news conference by Ward 7 candidate Keegan Henry-Mathieu.

“We want to build the Finch LRT right now because no neighbourhood should be left behind,” Chow said. “This LRT can be built by 2020 and it will serve thousands and thousands of people.”

Chow went on to criticize Ford and John Tory for not planning to build the LRT.

“Mr. Tory’s map does not have this LRT in there,” Chow said referring to SmartTrack. “This Finch LRT is missing from his transit plan and I think this neighbourhood deserves better.”

A representative for Tory’s campaign told CP24.com Wednesday that the line would in fact proceed as planned.

Ford, meanwhile, has said that he would replace the LRT with an underground subway line from Finch West Station to Humber College but the timeline for that project is not known.

Ford, Tory and Chow are all expected to participate in a mayoral debate at the Joseph J. Piccininni Community Centre on St. Clair Avenue at 7 p.m.

@chrisfoxnews is on Twitter. Remember for instant breaking news follow @cp24 on Twitter.