MUNICIPAL LAND TRANSFER TAX

This is the first of my postings.  I'm thinking they are so much less old-fashioned than the flyers I have sent to clients in the past, AND as green as it gets.

The matter that I've been pondering for the past few weeks is the widely expected Municipal Land Transfer Tax.  For years we've been paying a Provincial LTT.  The amount we paid was based on the price we paid for our homes.  This is how we figured it out:

  • The first $55,000 is taxed at .005, so the tax is $275.00.
  • Then, up to $250,000, the $195,000 is taxed at .01, so the tax is $1950.
  • The next change is at $400,000 when the tax is .015, so the tax is $2250.

So the total tax for a home costing $400,000 would be $4475.

Toronto has been living with an additional Municipal tax for 8 years now.  It is similarly structured, with small variance, so that the total is slightly less.  The Provincial government is working on legislation allowing all cities to impose a MLTT.  

All the local realtors I've spoken to are strongly protesting the imposition of the tax.  We have been corresponding with our MPP, signing and sending petitions, doing whatever we can to prevent it, but I wonder if they even hear us.  

We should hear more on the news later this week about it.  FINGERS CROSSED!

Joan Hutchins

Joan Hutchins

Sales Representative
CENTURY 21 Heritage House Ltd., Brokerage*
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