Proposed Amendments to the Land Transfer Tax Act

December 2007

On December 13, 2007, proposed amendments to the Land Transfer Tax Act were announced in the 2007 Ontario Economic Outlook and Fiscal Review. The proposed amendments must be passed by the Legislature and receive Royal Assent to become law. This notice provides general information and is not a substitute for the legislation.

First-Time Homebuyers Refund proposed to include Resale Homes

In keeping with the government's commitment to help Ontarians who are starting out, it is proposed that the Land Transfer Tax Refund Program for First-time Homebuyers be expanded to include purchases of resale homes. This measure would be effective for agreements of purchase and sale entered into after December 13, 2007. As a result of this change, first-time homebuyers of newly-constructed or resale homes would be able to receive a refund from the provincial government of up to $2,000 of the land transfer tax paid.

Further details to be issued

More detailed information, as well as a Refund Affidavit which will include resale situations, will be issued shortly.

Resale Homes

Pending the proposed amendments becoming law, land transfer tax must be paid at the time of registration. Following registration, a refund affidavit, which will be published shortly, may be submitted to the Ministry of Revenue.

Remember, the proposed expansion to resale homes would apply to agreements of purchase and sale entered into after December 13, 2007.

Refund cheques would be issued upon the proposed amendments becoming law.

Newly-Constructed Homes

Eligible first-time homebuyers of newly-constructed homes should continue to have their lawyers claim the refund under current procedures at the time of registration. See Tax Bulletin LTT 4-2003 Refunds for First-Time Purchasers of Newly-Constructed Homes.

For More Information

Telephone enquiries

Tel.: 905 433-6361
Fax: 905 433-5770
TTY (Teletypewriter): 1 800 263-7776

Ministry of Revenue
Land and Resources Taxes Section
33 King Street West
PO Box 625
Oshawa ON L1H 8H9

Internet enquiries

This publication and various other English and French bulletins published by the Ministry of Revenue may be obtained online at www.ontario.ca/revenue.

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