Toronto's Land Transfer Tax Passes
It's official. It's passed.
Starting in 2008, when you sell a home in Toronto, you'll pay an additional 0.5% to 2% of it's value to the city of Toronto.
Hated by many, the measure squeaked by city council during this evening's vote.
Here's the kicker. The new tax was supposed to be instead of property tax increases. Now, the Globe & Mail is reporting that property tax hikes are expected next year regardless.
It's a sad commentary on Toronto's fiscal management, and Ontario's strategy to offload expenses on municipalities.
In any case, there's sure to be one interesting side effect. December might be a good month for Toronto Realtors. It's the last month that Torontonians will be able to buy before the new tax takes effect. Toronto mortgage planners could see a similar increase in business.
My question is that if you have entered into an agreement of purchase and sale before the end of the year of 2007 but the closing date is after Feb.1,2008
do you have to pay the Toronto land transfer tax?
Posted by: alex | October 23, 2007 at 01:11 PM
Hi Alex,
Correction: Based on the Toronto Star's report, our understanding is that you have until February 1, 2008 to close.
To be safe, I tried to verify this with Toronto's tax department but they said they don't yet have any info on the new tax because it just passed yesterday.
I then called Access Toronto at 416-338-0338 and they referred me to Robert Hatton, Manager of Corporate Finance at 416-392-9149. Unfortunately his voicemail was full.
I would suggest calling the above two numbers in 1-2 days and someone should be able to confirm.
Rob, Co-Ed. CMT
Posted by: Canadian Mortgage | October 23, 2007 at 01:48 PM
In clarification, to avoid the tax you must:
a) Purchase by December 31, 2007 (and close any time thereafter); or,
b) Purchase after December 31, 2007 and close by January 31, 2008.
Posted by: Online Mortgage Broker | November 21, 2007 at 02:48 AM