HOW RECENT LAND TRANSFER TAX ACT CHANGES WILL IMPACT MUNICIPALITIES
Recent changes were made to the Land Transfer Tax Act (LTTA) by the provincial government for the purpose of gathering residential housing data and to collect the new Non-Resident Speculation Tax (NRST).
These changes now require all lawyers dealing with Ontario real estate transactions in the Greater Golden Horseshoe to ensure that the mandatory information is completed in Land Transfer Tax Affidavits. These affidavits are required for all land acquisitions, with very few exceptions.
Lawyers acting for parties acquiring land interests must ensure that they have reasonable evidence from their clients to support the statements made pursuant to the LTTA related to the pending use after the acquisition of both lands with one to six dwellings and agricultural lands, as well as the applicability of the NRST to the transaction.
Although these changes may seem irrelevant to the area of municipal law, the legislation creates a new blanket obligation that includes gathering sworn declaratory information from municipalities.
As of May 5, 2017, when dealing with the acquisition of land by a municipality, the ‘Prescribed Information for the Purpose of Section 5.0.1’ form must be completed and commissioned in addition to the ‘Acknowledgement and Direction’ form. There are also Land Transfer Tax Statements which will be necessary to deal with the Prescribed Information for purposes of Section 5.0.1 of the LTTA and the NRST.
Although these changes do not create a large burden on municipalities, it is important to complete these forms so the required documentation can be completed, filed and registered in connection with the acquisition of land. If you have any questions regarding these new changes, be sure to contact our municipal lawyers to discuss how they may impact you.
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Jim McIntosh, Managing Partner & Nicole Wozniak, 2017 Summer Student