Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



Ontario Announces Land Transfer Tax Refund Program Expansion

Effective December 13, 2007, the Government of Ontario will give first-time home buyers or newly constructed and resale homes a refund on up to $2,000 of the land transfer tax paid in connection with the acquisition.  Land transfer tax is a provincial transfer tax that is payable at the time a deed is registered representing a transfer in title.

The land transfer tax rate in Ontario for residential property is:

  • 1/2 of 1% on the first $55,000
  • 1% on the portion between $55,000 and $250,000
  • 1.5% on the portion above $250,000
  • 2% on the portion above $400,000 (if the conveyance contains at least one and not more than two single family residences)

Individuals who are transferring to Ontario to manage or work at a subsidiary of a foreign multinational corporation or business may take advantage of this benefit if they have not owned property in Ontario before December 13, 2007.

The proposed changes are set out in Bill 24, which still needs to pass in the Legislature.  Since the Liberal Party has a majority, the changes should pass without any difficulty.  To read Bill 24, please click on Bill 24.

If you would like to read more about the announcement, please click on December 13, 2007 Announcement Of Land Transfer Tax Refund.

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