Deadline passes for Toronto home buyers to avoid new tax
CBC News
Home buyers in Toronto can no longer dodge a new land transfer tax, as the deadline came and went Monday for exemption from the city-imposed fee.
The controversial tax, valued at 0.5 per cent to two per cent of the sale price, can add thousands of dollars to the final cost of homes in the city.
The tax will take effect on Feb. 1, but purchasers had until Dec. 31 to buy a home to be exempt from it, with the closing date to be no later than Feb. 1.
Sales made to first-time home buyers under $400,000 are also exempt from the new fee.
The land transfer tax is one of two new taxes approved by Toronto city council in October as part of its response to a $500-million budget shortfall.
Since the vote, Toronto real estate agents observed a rush by many homeowners to sell their homes before Dec. 31, in the hope of avoiding the tax. Agents have predicted a slowdown in the city’s real estate market this year.
Combined, the land transfer tax and a vehicle registration tax are expected to raise about $175 million this year for the city, as well as about $300 million in subsequent years. The $60 per vehicle registration tax takes into effect later this year.
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