If you thought Toronto real estate taxes were too low, then you can file the following under ‘good news’. In February, the City of Toronto approved a Municipal Land Transfer Tax (“MLTT”) Administration Fee, for transfers registered on title on or after April 1, 2016. The fee will be $75.00 plus HST, which of course is an additional tax, at a total of $84.75.
Transactions that are usually exempt from the MLTT will not be charged the fee, such as a transfer of land between spouses, or the City of Toronto, but it does arise in other places that the MLTT does not. First time home buyers, for example, who receive the MLTT rebated, are still subject to paying the administration fee – for a tax they are not subject to.
The tax will be collected online at the time of registration. If, however, the transaction is registered through paper instead, then the tax must be paid in person at the North York Civic Centre.
While the tax may be a nuisance, we are always happy to help you with your real estate transaction. Contact us today for more information.
Thanks to Shaun Bernstein for this contribution.
Disclaimer: Welcome! Please note that this blog and its posts are intended for educational uses only. They are not intended as, nor should they be construed by the user as legal advice. The use of this blog and this post does not create a lawyer-client relationship. Should you require legal advice for your particular situation then please feel free to contact us to arrange for an in-person consultation.