As a taxation measure granted under the City of Toronto Act,2006, Toronto City Council approved a new Municipal Land Transfer Tax effective February 1, 2008 that will be applied to purchases on all properties in the city of Toronto in addition to the Province’s Land Transfer Tax.
Teranet currently collects the Land Transfer Tax on behalf of the Province of Ontario. The City of Toronto designated Teranet to collect the Municipal Land Transfer Tax when your property transaction is registered by your real estate lawyer. Teranet will be communicating MLTT procedures directly through real estate lawyers.
Municipal Land Transfer Tax Implementation
The Municipal Land Transfer Tax (MLTT) will be charged on properties purchased in Toronto and on disposition of all beneficial interests with closing dates on or after February 1, 2008.
Following the provincial government’s Land Transfer Act and property transaction requirements, your lawyer will register your property transaction and at that time your MLTT will be collected. For more information on the collection of your MLTT, please contact your real estate lawyer.
Transition Rules: If your Purchase & Sale Agreement is executed on or before December 31, 2007 you are eligible for a full rebate.
AUG