Effective on transactions entered into on October 1, 2016, or later, this tax is modeled closely on the provincial “Property Transfer Tax Act”. The PTT Law adopts the provincial rate of 1% on the first $200,000 of fair market value (purchase price), 2% of the fair market value that exceeds $200,000, but does not exceed $2Million, and 3% of the remaining fair market value.
The PTT Law adopts the same exemptions as are offered off-reserve, including exemptions for first time home buyers, and the recently added exemption on new construction (purchases under $750,000 are exempt).
It is important to note that there are transitional rules in place. For example, for those of you who purchased in the Spring at “Seymour Village” above Ravenwoods – which completes in 2017: There is no PTT on new residential property (a “pre-sale”) where the pre-sale agreement was entered into within one year of the PTT Law coming into force and where the home is finished and the sale completes within two years of the PTT Law coming into force. There is also no PTT on the sale of a residential property where the agreement of sale was executed before the PTT Law came into force and the sale completes within six months of the PTT Law coming into force.
Read the full overview HERE.
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