Currently, a purchaser is charged a tax when they buy land or an interest in land in Ontario. This tax is known as Ontario Land Transfer Tax and is a significant closing cost involved in the purchase of a home. The land transfer tax, which is calculated on the value of the consideration, is payable on the closing date when the Transfer is registered.
The City of Toronto currently has a separate land transfer tax, and is the only municipality in Ontario to levy such a tax. The City of Toronto Act, 2006, provides the authority for the municipality to implement the municipal land transfer tax. The tax was implemented such that Toronto real estate transactions with closing dates after February 1, 2008 were charged the municipal land transfer tax in addition to the provincial land transfer tax.
The Ontario Real Estate Association (OREA) has recently spearheaded a lobby to the provincial government to oppose the spread of municipal land transfer tax to other municipalities in the province and has even created a website to promote this cause (www.donttaxmydream.ca).
At Daniel & Partners LLP, Robert Di Lallo specializes in real estate law and can help you successfully complete your real estate transactions.
