As you all know the City of Toronto approved a Municipal Land Transfer Tax and (LTT) was effective February 1, 2008. It is applied in addition to the Province’s Land Transfer Tax.
The follow chart is how the LTT is calculated.
|Value of Consideration||MLTT Rate|
|Up to and including $55,000.00||0.5% plus|
|$55,000.01 to $400,000.00||1.0% plus|
The rebate for first time purchasers is up to a maximum of $3,725.
The analysis of the Toronto Land Transfer Tax was conducted by respected economists from the C.D. Howe Institute and the University of Toronto. It determined that this tax is directly responsible for reducing sales in the City of Toronto by 16 per cent. You can click the link to read the report yourself.
Of course I think the tax is not doing the economy any good but I doubt it has reduce sales by 16 per cent. I believe the sluggish economy is more to blame for the reduced sales.
However, please keep it in mind for the upcoming municipal election campaign, that the LTT should be eliminated.
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