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Financing, Mortgages and Insurance What options are best for you and your situation?

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Old 2006-05-06, 11:38 AM
christieg77 christieg77 is offline
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Join Date: Apr 2006
Posts: 3
Default Land Transfer Tax now applies to Upgrades & GST!!

Hi all
Just read this in the Saturday issue of the Toronto Star, New in Homes section. I had no clue about this, am I alone? It says that "at the end of March, a new land transfer tax bulletin quietly appeared, buried deep within the Ministry of Finance website (www.trd.fin.gov.on.ca - in the search box enter LTT1 - 2006). Under the current practice, purchasers of new homes and condos pay land transfer tax on the base price of the home excluding GST, all the builder extras and the purchaser upgrades. .... Homebuyers will now have to pay tax on the total purchase price, including all the extras and upgrades, plus installations, assumed charges and misc. costs." It goes on to list what is now going to be taxed:

- upgraded flooring, cupboards, doors, windows and counters
- architectural changes
- extra doors & entrances
- whirlpool baths
- finished basements
- smoke detectors
- roughed-in washrooms
- fireplaces

.. as well as:

- lot premiums
- tree planting
- sodding and planting
- driveway paving
- municipal lot levies
- development charges & increases in development charges
- school levies
- the $53.50 charge by the Law Society to sellers
- any administrative fee charged for a late request for upgrades
- the Ontario New Home Warranty (Tarion) plan fee
- architect's fees

Basically this means that every single aspect of our new homes is taxable. Every... single.... thing. The author says the GST rebate will more than offset this but I know I'm definitely rethinking how much I'm going to spend on upgrades.
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