Land Transfer Tax

[cokotlc]

Hi Guys,

First time posting, take it easy on me!  I've tried searching the forum, but I haven't really seen anything that answers this specifically.. . . I need a little bit of clarification, hopefully someone will take the time to help me out.

The following is quoted directly from Ontario's Ministry of Revenue's website:
"Every person obtaining an interest in land is liable to land transfer tax. The tax is calculated on the value of the consideration for the  transfer.  In certain circumstances the Land Transfer Tax Act (Act) deems the value of the consideration to be the fair market value of the land."

http://www.rev.gov.on.ca/english/taxes/ltt/

Typically do you have to pay land transfer taxes based on the fair market value or on the actual price paid at the tax sale?[/b]

I'm just trying to make sure I have all my t's crossed and i's dotted before I jump in.  I'm trying to find the right low cost property to build a 'green' cottage on.  I'm going to have huge building costs by establishing the cottage off the grid and want to save if possible on the actual land purchase.  I guess it's my Scottish ancestry coming through.

BTW, I would like to mention that this site has been truly informative.  Kudos to the creator and regulars who post.

Tammy

[worldjohn]

Land transfer tax is based on the actual amount paid.  Someone please correct me if rules have changed.  I'm curious what type of green cottage do you plan to build as I have the same type of plan.  A little piece of advice based on my experience.  Do not apply for a building permit.  Most municipalities will not give you one if the property is not on  a maintained road.  Get a big enough property so that no one can see what you are doing.  Email me if you want to know more about my negative experiences trying to build a green house off grid.

[davecourt9]

Land transfer tax is based on purchase price

.5% on first  $55,000
1% on portion between  $55,000-$250,000
1.5% on balance over $250,000
hope that helps
Dave