What is a Land Transfer Tax?
It is a tax payable on the transfer of an immoveable. Who must pay the tax? It is the purchaser of the immoveable that must pay the tax. If there are a number of purchasers they are jointly responsible for its’ payment. Who collects the tax? Each municipality is required to collect a land transfer tax on the sale of any immoveable situated in its’ territory.. see :Loi concernant les droits sur les mutations immobilières – L.R.Q., c. D-15.1. When must the tax be paid? The tax is payable when the immoveable is acquired: it is payable in a single instalment. On what value is the tax assessed? The taxi is levied on the highest of one of the three following possibilities: • The amount actually paid for the purchase of the immoveable (not including any provincial or federal sales tax (TPS /TVQ) • The consideration set out in the agreement for the transfer of the immoveable • The market value at the time of transfer (this being the value set out on the evaluation roll multiplied by a comparat
A land transfer tax is a one-time tax which is assessed when a property changes hands. The tax is paid to the regional government, and it typically takes the form of a percentage of the purchase price. Land transfer taxes are separate from the title fees which many regional governments charge to record a change of title in their records. Not all regions have land transfer taxes, and information about such taxes is usually available from real estate professionals. Local governments utilize land transfer taxes for a variety of things, from funding specific enterprises to supplementing the budget for schools and other needed services. Voters usually have to approve any changes in the land transfer tax policy for an area, and they must also approve the terms of those changes. For example, a city can ask voters to approve a temporary increase in the land transfer tax to make up a budget shortfall, or to approve a permanent increase. Depending on the regional laws, this tax may be paid by th
A land transfer tax is a tax based on a percentage of the sale value of the property and is collected by the municipality in which it is located. The provincial government has legally authorized municipal governments to collect taxes on the transfer of properties within their municipalities. This tax was implemented by the provincial government when it ceased to redistribute to the municipalities a portion of the revenues generated by the property sales tax. Many refer to this transfer tax as the “welcome tax” (which is a direct translation of “tax de bienvenue”), as it was named for the minister who implemented it. If it truly were a “welcome tax”, then tenants along with homeowners would be subject to this tarif. It can be more readily compared to a sales tax. As all other sales taxes, the transfer tax becomes the responsability of the purchaser. How is the land transfer tax calculated? The land transfer tax is a calculation based on the the tax base according to the following rates:
