As city council begins to wrangle over next year’s budget, expect to start hearing a lot about the Municipal Land Transfer Tax (MLTT) along with the usual sparring over the property tax rate.
Here’s a primer on the MLTT, a tax reviled by home buyers and real estate professionals but one that’s delivered a huge revenue boost for the city since its implementation in 2008.
Who pays the tax? Anyone who buys a home or business in the city.
How much is it? For residential properties, the tax is charged as a percentage of the sales price. Here’s how the tax is calculated on a property with at least one, but not more than two, single-family residences.
|Purchase Price||Calculation of Land Transfer Tax|
|0 – 55,000||.005 x Amount|
|55,001 – 250,000||(.01 x Amount) minus 275|
|250001 – 400,000||(.015 x Amount) minus 1,525|
|400,000+||(.02 x Amount) minus 3,525|