NOTICE: Municipal Land Transfer Tax Administration Fee
Real estate practitioners with closings in Toronto should be aware of a new closing fee that will be imposed by the City of Toronto on Transfers subject to Municipal Land Transfer Tax (MLTT).
On February 18th city council approved a new MLTT Administration Fee for transfers of title registered on or after April 1, 2016. The fee is set at $75 plus HST. According to the City of Toronto this has been introduced to defray “the processing costs associated with MLTT transaction.”
The new fee will be deducted from the ERBA accounts of registering firms in addition to other registration fees. Per Teraview Bulletin 16-08 (https://www.teranetexpress.ca/content/tvuser/newsletters/Mar16-Iss-08_MLTT_Admin_Fee.pdf), it appears that this amount will not appear in the calculated Land Transfer Tax amounts on the face of the Transfer.
Please ensure that your fund summary has taken this cost into account.
More information may be found on the City of Toronto Web site at the following link:
http://www1.toronto.ca/wps/portal/contentonly?vgnextoid=769f4b3d0e673510VgnVCM10000071d60f89RCRD&vgnextchannel=4f90ff0e43db1410VgnVCM10000071d60f89RCRD
The Real Property section plans to raise its concerns about this fee with the City.