• About
  • Offices
  • Careers
  • News
  • Students
  • Alumni
  • Payments
  • FR
Background Image
Bennett Jones Logo
  • People
  • Expertise
  • Knowledge
  • Search
  • FR Menu
  • Search Mobile
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
View all
Practices
Corporate Litigation Regulatory Tax View all
Industries
Capital Projects Energy Funds & Finance Mining View all
Advisory
Crisis & Risk Management ESG Strategy and Solutions Governmental Affairs & Public Policy
View Client Work
International Experience
Insights News Events
New Energy Economy Series Business Law Talks Podcast Economic Outlook
ESG & the CIO Subscribe
People
Practices
Industries
Advisory Services
Client Work
About
Offices
News
Careers
Insights
Law Students
Events
Search
Alumni
Payments
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
 
Blog

Ontario Modernizing Land Transfer Tax

November 15, 2016

Written By Jane Helmstadter

On November 14, 2016, the Ontario Minister of Finance, Charles Sousa, presented the 2016 Ontario Economic Outlook and Fiscal Review in the Ontario Legislature. Among the various proposals in the Outlook, the Minister proposes to "modernize" Land Transfer Tax. The modernization includes: doubling the maximum refund for first time home buyers; increasing the rate payable on residential properties; and increasing the rate payable on non-residential properties. Land transfer tax rates are currently:

  • 0.5% on the first $55,000;
  • 1% above $55,000 to $250,000;
  • 1.5% above $250,000; and
  • 2% above $400,000 if the land contains one or two single-family residences.

For residential properties, the proposed changes would add a new rate of 2.5% on that component of the purchase price in excess of $2 million. For non-residential properties, there would be a new rate of 2% on that component of the purchase price over $400,000.

The changes are proposed to be effective as of January 1, 2017, but as a transitional measure, purchasers who entered into agreements of purchase and sale on or before November 14, 2016, will continue to pay land transfer tax based on the current rates.

In addition to increasing the rates, the Province proposes to collect additional information about purchasers and properties which might include: the type of property (residential, recreational, commercial, agricultural or industrial); the intended use of the property (principal residence or use as rental property); and the residency, citizenship or permanent residence of the purchaser. The Province is also proposing that the credit for first time home buyers be available only to Canadian citizens and permanent residents.

Finally, the Province is exploring changing the basis of the land transfer tax calculation from the current "value of the consideration" (which is most often just the purchase price but which can include more than the purchase price) to the fair market value of the property on the grounds that this will reduce the opportunities for tax avoidance and will promote fairness. The Province has not indicated on what basis it will determine fair market value nor has it indicated whether transfers which have to date been exempt because there was no "value of the consideration" paid would be taxable on the fair market value of the land.

Download PDF

Fall 2022 Economic Outlook: Managing Risks and Taking Action

Related Links

  • Insights
  • Media
  • Subscribe

Recent Posts

Blog

Blueberry River First Nation, Treaty 8 First Nations [...]

January 30, 2023
       

Blog

Requisitioning the Closure of Open Building Permits

January 30, 2023
       

Blog

Field Notes: Recent Pesticide Initiatives in Canada

January 26, 2023
       

Blog

Canada Border Services Agency Publishes Update of [...]

January 25, 2023
       

Blog

Balancing Act: Facilitating Trade and Worker Protection [...]

January 18, 2023
       
Bennett Jones Centennial Footer
Bennett Jones Centennial Footer
About
  • Leadership
  • Diversity
  • Community
  • Innovation
  • Security
  • History
Offices
  • Calgary
  • Edmonton
  • Montréal
  • Ottawa
  • Toronto
  • Vancouver
  • New York
Connect
  • Insights
  • News
  • Events
  • Careers
  • Students
  • Alumni
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
© Bennett Jones LLP 2023. All rights reserved.
  • Privacy Policy
  • Disclaimer
  • Terms of Use
Logo Bennett Jones