Highlights of the new Tax:
|This calculator shows 3 figures.
The City of Toronto has indicated that it has been able to make arrangements that will allow purchasers who are eligible for a FULL rebate of the Toronto Land Transfer Tax (TLTT) to close their transactions without paying the TLTT upfront (and then receiving a rebate at a later date). The City previously indicated that these arrangements would not be made until the “spring of 2008”, but has now indicated that changes will be made by February 1, 2008, when the Toronto land transfer tax takes effect. Toronto land transfer tax is not payable on transactions closing before the tax takes effect on February 1, 2008. For transactions closing after the Toronto land transfer tax takes effect on February 1, 2008, the City of Toronto allows for certain rebates, as described below. DetailsAccording to the City, purchasers who are eligible for a FULL rebate of the Toronto land transfer tax will not have to pay the tax (meaning that they do not have to pay the tax upfront and be rebated later). This includes the following:
More Information Complete details of the Toronto land transfer tax are available by calling the City of Toronto at 416-338-0338.
Details of Approved Toronto Land Transfer Tax
October 23, 2007 -- Toronto City Council has approved a municipal land transfer tax that will be levied on top of the provincial land transfer tax. TREB worked very hard to oppose this tax and commends the efforts of REALTORS® on this issue. TREB took a strong position to oppose this tax as unfair in principle and refused to compromise. As a direct result of this strong position, City Council was forced to make a number of amendments to the City’s original proposal, including rebates for first-time buyers, a reduced rate, and grandfathering for existing transactions.
The following is based on currently available information. Some information from the City is available here.
What was approved by City Council?
A second land transfer tax, on top of the provincial land transfer tax, at the following rates:
Residential: (An easy-to-use residential calculator is available here):
Commercial / Industrial / Etc.:
When does this take effect?
February 1, 2008.
Are existing transactions grandfathered?
Yes. Any transactions where the purchaser and vendor have entered into an Agreement of Purchase and Sale for the property on or before December 31, 2007, and closing after the TLTT takes effect on February 1, 2008, will be REBATED the full amount of the Toronto land transfer tax, regardless of how long after February 1, 2008 the closing date is. (Note: Media reports that closings must occur by Feb. 1, 2008 are inaccurate.) Agreements closing before February 1, 2008 do not pay the tax. Teranet will be collecting the Toronto land transfer tax for the City of Toronto. Once the City’s rebate policies are reflected in Teranet’s collection system, the rebate-eligible amount will be exempt at the time of registration. The City previously indicated that these arrangements would not be made until the “spring of 2008”, but has now indicated that changes will be made by February 1, 2008, when the Toronto land transfer tax takes effect. According to the City, purchasers who are eligible for a FULL rebate of the Toronto land transfer tax will not have to pay the tax (meaning that they do not have to pay the tax upfront and be rebated later). This means that purchasers involved in grandfathered transactions (Agreements of Purchase and Sale signed on or before December 31, 2007, closing on or after February 1, 2008) will not have to pay the Toronto land transfer tax. If your clients have concerns, they should check with their lawyer.
What about Agreements of Purchase and Sale signed after December 31, 2007 with closing dates before February 1, 2008?
Purchasers with a Purchase and Sale agreement signed after December 31, 2007 with a closing before February 1, 2008 will not be required to pay the Toronto Land Transfer tax.
What about Agreements of Purchase and Sale signed after December 31, 2007 with closing dates on or after February 1, 2008?
Purchasers with a Purchase and Sale agreement signed after December 31, 2007 with a closing on or after February 1, 2008 will be required to pay the full Toronto Land Transfer tax.
Where does this apply?
The Toronto land transfer tax only applies to transactions within the City of Toronto. This does NOT apply to property transactions outside of the City of Toronto.
Are first time home buyers affected?
First time home buyers of new AND re-sale homes will receive a rebate of the Toronto land transfer tax of up to $3,725 (this equals a 100% rebate on homes purchased for up to $400,000). Teranet will be collecting the Toronto land transfer tax for the City of Toronto. Once the City’s rebate policies are reflected in Teranet’s collection system, the rebate-eligible amount will be exempt at the time of registration. The City previously indicated that these arrangements would not be made until the “spring of 2008”, but has now indicated that changes will be made by February 1, 2008, when the Toronto land transfer tax takes effect. According to the City, purchasers who are eligible for a FULL rebate of the Toronto land transfer tax will not have to pay the tax (meaning that they do not have to pay the tax upfront and be rebated later). This means that first-time home buyers where the total Toronto land transfer tax is $3,725 (the Toronto land transfer tax payable on a home purchased for $400,000) or less, will not pay Toronto land transfer tax (see exception noted below). If your clients have concerns, they should check with their lawyer.
Note: First-time home buyers with Toronto land transfer tax payable above the maximum rebate amount of $3,725 (those purchasing homes above $400,000) will be required to pay the total Toronto land transfer tax, and then receive the maximum rebate of $3,725 at a later date from the City. Once all changes have been made to Teranet’s collection system, in the spring of 2008, these buyers will only have to pay the balance of the Toronto land transfer tax above $3,725.
Who qualifies as a first-time home buyer?
According to the City of Toronto, eligibility rules for the Toronto Land Transfer Tax first-time buyer rebate will mirror provincial rules, as follows:
Are Toronto Land Transfer Tax Rebates in addition to Provincial Land Transfer Tax Rebates?
Yes. The provincial government also provides a rebate of the provincial land transfer tax for first-time buyers. See details of provincial land transfer tax rebate.
How can I get more information?
More detailed information will be provided once it is made available by the City. If you have questions, contact the City of Toronto at Access Toronto at 416-338-0338. Some information from the City is available here.
If you have questions, contact the City of Toronto at Access Toronto at 416-338-0338.
TORONTO, ONTARIO--(Marketwire - Oct. 24, 2007) - Toronto's REALTORS® are concerned about the potential impact of the City of Toronto's recently approved second land transfer tax and disappointed that the public's opinion of this tax was ignored.
"REALTORS® have been working hard to provide the facts about this unfair idea and the public responded with action. An overwhelming majority of Torontonians believe that this tax is a bad idea," said Maureen O'Neill, President of the Toronto Real Estate Board (TREB). "The public made their voices heard loud and clear but, unfortunately, they were ignored."
A poll conducted by the Environics Research Group, commissioned in part by TREB, showed that 62 per cent of Torontonians think that a land transfer tax is an unfair solution to the City's financial challenge and that 61 per cent of Torontonians wanted their Councillor to vote against it.
"Torontonians deserve to be treated fairly. A second land transfer tax is an extremely unfair way to address the City's financial challenges. It forces a relatively small group, home buyers, to pay for services for everyone. That, simply, is unfair," added O'Neill.
TREB also raised concerns about the potential impact of a second land transfer tax.
"Home ownership is something that the City should be trying to encourage, not discourage. The second land transfer tax will make it more difficult for people to achieve that dream and it could hurt property values for some current home owners," said O'Neill. "It could also have far-reaching impacts on the City's whole economy by reducing the amount of money that home buyers have to spend on things like furniture, renovations, and energy-efficiency upgrades."
TREB is disappointed that the City is choosing new taxes instead of more prudent solutions. Specifically, TREB believes that the City should have waited for the Mayor's panel to report on alternative options. The Environics poll showed that 78 per cent of Torontonians think that City Council should have waited until the Mayor's panel finished its work before deciding on new taxes.
"This is a classic example of putting the cart before the horse: tax now, save later. That, simply, doesn't make sense," said O'Neill. "The Mayor appointed a panel to look for savings and other options and we applaud him for that. The panel is something that TREB, and the public, called for, but they should have been allowed to finish their work so that fair options could have been considered instead of a land transfer tax."
TREB has consistently supported fair options for dealing with the City's financial challenges, including a more fair deal with senior levels of government, and continues to support City efforts in this regard.
"Unfortunately, we disagree with the City on the land transfer tax, and we will continue to oppose it. We continue to believe that it is not fair," said O'Neill. "Let's not forget that this tax doesn't solve the City's financial challenge. We look forward to working with the City towards fair solutions. We will continue to push for a fair deal for Toronto from senior levels of government, as we always have."
Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service. Serving more than 26,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada's largest real estate board. Greater Toronto Area open house listings are available on www.TorontoRealEstateBoard.com.
Oct 19, 2007 04:30 AM Donovan Vincent Tony Wong Staff reporters
When he picked a land transfer tax as his main weapon of choice against a looming city budget crisis, Mayor David Miller landed a formidable opponent.
Just how the Toronto Real Estate Board became akin to the official opposition at city hall, powerfully influencing councillors to vote against the Miller plan, is a tale that goes as far back as last year, when the province was drafting the City of Toronto Act – the legislation that gave Toronto power to implement its own new taxes.
Unlike community groups that have only recently coalesced to defend the need for the land transfer tax, the real estate board has been in battle mode for a long time, screaming against it.
The real estate organization, along with partners such as the Ontario Real Estate Association, the Ontario Home Builders' Association and the Building Industry and Land Development Association, has conducted a massive campaign, including full-page advertising in the major newspapers, a website, and commissioning a poll asking voters what they think. (Perhaps predictably, it found 62 per cent opposed.)
As the clock ticks closer to next week's vote at city hall, the board is feverishly calling and meeting with councillors in a bid to block passage of the tax. They're especially targeting the undecided councillors. And many appear to be listening.
"They've been very active and effective,'' Councillor Denzil Minnan-Wong, a vocal opponent of the new tax, says of Von Palmer and Mauro Ritacca, the two real estate board spokespeople who have led the charge.
The real estate board, with 26,000 members and $23 million in annual revenues, is the largest organization of its kind in North America and a powerful lobby for the industry. It's widely agreed that the board's presence, along with other anti-tax groups, had a significant impact on council's 23-22 vote in July that deferred a decision on the land transfer tax until now.
Palmer says the board's message is simple: The land transfer tax, which parallels the existing provincial tax and is aimed at raising $300 million a year for the city, is unfair because it asks 5 per cent of taxpayers – those buying homes in a given year – to cover 70 per cent of the city's budget shortfall.
"If you're talking taxes, you need to spread it across the board,'' Palmer told reporters after the group's annual general meeting yesterday, attended by about 300 board members.
The organization has painted a doomsday scenario where the tax seriously hurts the Toronto real estate market – with buyers looking elsewhere, younger buyers blocked from buying a new home, and even environmental effects as buyers flock to the non-taxed 905 areas, encouraging urban sprawl.
"Well, they're obviously worried about it because it (the tax) creates a wedge between the buyer and seller, and if that happens, sales volumes will drop and it will impact commissions. That's what they're ultimately worried about," says Lawrence Smith, University of Toronto professor emeritus, who specializes in real estate economics and also manages a real estate portfolio with Toronto assets.
Board president Maureen O'Neill called the home buying tax "short-term thinking at its worst.''
She said the board has spent more than $300,000 on advertising and polling, $150,000 of that received from other organizations. "We have been throwing money at this – people are really upset."
Deputy mayor Joe Pantalone said the board played "dirty" in its campaign and has "zero credibility."
"Why haven't they adjusted those commissions? ... Prices are skyrocketing and they're making windfall profits.''
"I think that's a question that will be on everyone's shoulders," he said. "There are so many variables that come into play now."
Quick facts on the new land transfer tax
Read more about the New Toronto Land Transfer Tax at my blog
Read about what happened in real estate last month.
I wish you much success, good health and happiness today and always!
If you would like to discuss issues like this or other questions you may have, please email me at anytime .
Read more about the New Toronto Land Transfer Tax at my blog
Mississauga MLS Real Estate Properties & MLS.CA Homes for Sale | All Pages including Mississauga Real Estate Blog all maintained by email@example.com Copyright © A. Mark Argentino, P.Eng., Broker, RE/MAX Realty Specialists Inc., Brokerage, Mississauga, Ontario, Canada L5M 7A1 (905) 828-3434 Google First created - Tuesday, July 16th, 1996 at 3:48:41 PM - Last Update of this website: Monday, October 16, 2017 9:47 AM
At this Mississauga, (Erin Mills, Churchill Meadows, Sawmill Valley, Credit Mills and - or Meadowvale ) Ontario, Canada Real Estate Homes and Property Internet web site you will find relevant information to help you and your family.
You will receive valuable Real Estate information on a monthly basis - such as: where to find the 'best' mortgage interest rates, Power of Sale Properties and graphs of current house price trends. Plus, you will pick up ideas, suggestions and excellent real estate advice when you sell or buy your next home. Read Past Newsletters before you decide