Blog by Carol Lome, Broker

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The City Now Has 2 New Taxes

The city now has two new taxes at its disposal.  Here’s how they will work:

 

 

LAND TRANSFER TAX

 

 

WHAT: In addition to the provincial land transfer tax, an extra tax is payable on residential and commercial property purchases, including vacant land.

 

WHEN: On purchases that are signed after Dec. 31, 2007, and close after Feb. 1, 2008.

 

WHAT BUYERS WILL PAY:

 

 

Residential property value

 

 

0.5% on first $55,000

1% on next $345,000

2% on portion over $400K

 

Commercial property value

 

 

0.5% on first $55,000

1% on next $345,000

1.5% on the rest, up to $40M

 

Property Value                       Residential                             Commercial

 

$55,000                                   $275                                        $275

$250,000                                 $2,225                                     $2,225

$400,000                                 $3,725                                     $3,725

$600,000                                 $7,725                                     $6,725

$1M                                         $15,725                                   $12,725

$2.5M                                      $45,725                                   $35,225

 

* First time buyers do not pay the new tax on the first $400,000 of a property purchase.

 

Vehicle Tax

 

 

WHAT: The Personal Vehicle Ownership Tax will be charged on top of the provincial licence fee of $74 for a car, $42 for motorcycle and $12 for moped.  Details on billing are still to be worked out with the province.

 

WHEN: On vehicle registration from September, 2008.

 

WHAT DRIVERS WILL PAY:

 

Car: $60/year              Motocycle/moped: $30/year

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