Change in transfer taxes (Tax Welcome) on the territory of Ville de Montréal

In 2009, the Government of Quebec amended by a new law concerning the rights in real estate transfer (commonly called Welcome Tax) calculation of fees collected by the City of Montreal to the transfer of a building situated wholly within its territory and , only to allow the municipality to establish by regulation a higher rate to 1.5% for any portion of the tax base that exceeds $ 500 000.

Beginning in 2010 the law on real estate transfers applied to the territory of Ville de Montréal on the bracket value exceeding $ 500 000 increased from 1.5% to 2%. Now, calculating the duty falls within the following parameters:

0.5% on first $ 50 000

1.0% on the remaining 50 001 $ 250 $ 000

1.5% on the portion 250 001 $ 500 $ 000

2.0% on the portion that exceeds $ 500 000

This prescribed value is determined using the following criteria:

-The amount actually paid for the transfer of the property (not including GST and QST)

-The amount of contrepartie1 stipulated for the transfer of the property (amount included in the deed of sale)

-The amount of market value upon transfer of the property (value entered on the assessment roll multiplied by the factor comparison of the year corresponding to the date of registration)

For cons, the purchaser may be exempt from property transfer.

Here are the main situations that warrant an exemption:

Transfer lineal ascendant or descendant; (sales from father to son, from grandmother to her granddaughter);

Transfers between spouses, whether married or de facto spouses (as defined in the Act respecting duties on transfers of real estate). The same-sex couples are included in this provision of law;

When the buyer is a public body within the meaning of the Act;

When the transferor is a natural person and the transferee is a corporation of which at least 90% of shares issued and have full voting rights are owned by the transferor.

http://www2.publicationsduquebec.gouv.qc.ca/dynamicSearch/telecharge.php?type=2&file=/D_15_1/D15_1.html

Bernard Rodrigue http://blogueimmobilier.com/node/61