One More Land Transfer Tax for Homeowners? Say "NO"!!!

SAY NO to another HOMEOWNER TAX!!!!!  Another Land Transfer Tax which could make our life even more difficult whenever we buy a home.  It's Queen's Park that decides if a municipality can introduce a Municipal Land Transfer Tax (MLTT).  Your community could be next.  Take action now.  It only takes seconds to say NO.  Just go to the link and say No http://www.donttaxmydream.ca/

To have a better understanding of the Municipal Land Transfer Tax, I will explain how it works.

Who pays these taxes?  Anyone who buys a property in Toronto (right now only in Toronto, however municipalities that try to raise more money may try to introduce these taxes).

How much is it?  For residential properties, the tax is charged as a percentage of the sales price.  Here's how the tax is calculated on a property with at least one, but not more than two, single-family residences:

  • The first $55,000 at: 0.5 per cent
  • $55,000 to $400,000: 1.0 per cent
  • Over $400,000: 2 per cent

In addition to the MLTT, when buying a home you must pay a Provincial Land Transfer Tax (PLTT).

Provincial Land Transfer Tax (PLTT):

Up to $55,000 X 0.5% of total property value
From $55,000 to $250,000 X 1% of total property value
From $250,000 to $400,000 X 1.5% of total property value
From $400,000 up X 2% of total property value

Who can get a rebate?  Only First Time Home Buyers.

If you are a first time home buyer, you are eligible for rebates for both the Municipal and Provincial Land Transfer Tax.  Attention, you won't get a full refund, there is a limi .

  • Municipal Land Transfer Tax (MLTT): Maximum $3725
  • Provincial Land Transfer Tax (PLTT): Maximum $2000

How much cash does the MLTT generate for the municipality?  Lots!!!  In 2010, it generated over $275 million, and in 2012, over $345 millions (1).  For 2013, it is expected to generate $346 millions.

When do you pay MLTT?  Upfront, when you buy the house; it cannot be added to the mortgage.  MLTT is hurting  home buyers.  This money could be used by you much better for renovations, furniture, downpayment or just to vacation with your family.  The Ontario Real Estate Association (OREA) has launched a campaign against the Municipal Land Transfer Tax (MLTT) called "Say No to Another Home Owner Tax — Don't Tax My Dream".

If you agree with my above statement, go the the link http://www.donttaxmydream.ca/ and say NO, just to do your best for your community and family .

(1) CBC News http://www.cbc.ca/news/canada/toronto/toronto-s-land-transfer-tax-how-it-works-1.2439499

(2) Toronto Star http://www.thestar.com/news/city_hall/2013/08/29/toronto_expects_167_million_surplus_thanks_largely_to_land_transfer_tax.html

 

 

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