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

SAY NO to another HOMEOWNER TAX !!!!! An other Land Transfer Tax which could make our life even harder 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 on the Municipal Land Transfer Tax , I will explain how it works.

Who pays these taxes ? Anyone who buys a home or a business ( right now only in Toronto, however municipalities try to raise more money from taxes , therefore will try to introduce these taxes in more municipalities)

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 limit .

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

How much cash MLTT generates for the municipality ? Lots!!! In 2010 it generated over $275 millions 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 the home buyers . These 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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Lavinia Serbanescu

Lavinia Serbanescu

Sales Representative
CENTURY 21 Heritage Group Ltd., Brokerage*
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