Municipal Land Transfer Tax

Instructions for Lawyers

Effective March 1, 2017: Municipal Land Transfer Tax (MLTT) changes

At its meeting of February 15, 2017, City Council adopted changes to the MLTT rates, rebate structure and eligibility criteria, effective March 1, 2017. The changes are based on harmonizing the City's tax structure with the Provincial Land Transfer Tax (LTT) changes that were implemented January 1, 2017.


New user fee for refunds of Municipal Land Transfer Tax (MLTT) for refund applications submitted after original electronic registrations

Effective February 17, 2016, the City of Toronto charges a fee of $161.59 for refunds of Municipal Land Transfer Tax refund (rebate or exemption), where requests for refunds are made after the conveyance was electronically registered using the Teraview registration system. The new user fee is intended to recover the costs to process manual refund requests that are received following the original electronic registration of the sale. The fee is not applicable to any rebate or exemption that is filed as part of the original registration of the conveyance using the electronic Municipal Land Transfer Tax statements.

Change to Affidavit Submission Process
All users of older versions of Teraview must continue to forward for fax copies of their "Municipal Land Transfer Tax Affidavit for Electronic Registrations" to the City until such time as they have updated their Teraview software to the current version.

Change to Exemption Process for Grandfathering Exemption
Effective March 1, 2015,
the ability to apply electronically for the grandfathering exemption using Teraview statement 10011 is no longer available.  The MLTT must be paid in full upon registration and an application must be submitted directly to the City of Toronto to receive a rebate.

 

Municipal Land Transfer Tax Filing Requirements For:

General Information:


Should there be a discrepancy between the provisions contained in the By-law and the information set forth below or on the forms, the provisions of the By-law apply.

Please note that new forms may be added and current instructions and forms may be changed from time to time.

Electronically Registered Conveyances

Users of Teraview should refer to our User's Guide for assistance in completing their MLTT statements.

In order to retain a record of the MLTT statements you have selected, the document should be printed at the "in preparation" stage and retained in the file, as this information will disappear once the document is registered.

For evidence of payment of the MLTT, check your docket summary or bank statement as this information will not appear on your registered document.

Note: Teraview users that have not downloaded current version should continue to refer to Teranet for information and instructions.

Forms: 

MLTT Electronic Registration Statement User's Guide

Municipal Land Transfer Tax Refund/Exemption Application

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Non-Electronically Registered Conveyances

The MLTT affidavit, together with a copy of the registered instrument, payment of all applicable Municipal Land Transfer Tax and a copy of the agreement of purchase and sale, must be submitted to the City of Toronto for all conveyances not registered electronically within 10 business days of the date of registration.

Note: If a MLTT first time home buyer rebate is also being applied for, the rebate affidavit should be included with all the other documentation.

See form for required attachments and complete instructions.

Forms: 

MLTT Affidavit

Municipal Land Transfer Tax Rebate/Exemption Application

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Prepayment of MLTT for Electronically and Non-Electronically Registered Conveyances

Prepayment of the MLTT should be submitted by certified cheque or bank draft. The MLTT affidavit, along with a copy of the conveyance to be registered (or document "in prep"), the agreement of purchase and sale and any other relevant documentation, must be submitted to the City of Toronto to obtain certification that the MLTT owing was paid prior to registration.

Please forward documents to:
North York Civic Centre
Revenue Services
5100 Yonge Street, Lower Level
Toronto ON M2N 5V7

See form for required attachments and complete instructions.

Form: MLTT Affidavit

For Non-Electronic Registrations, Please Note:

The Land Registry Office will not request any evidence of certification of prepayment, nor will the certification form part of the registered document.

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Obtaining Verification that no MLTT is Payable for Electronically and Non-Electronically Registered Conveyances

The MLTT affidavit, along with a copy of the conveyance to be registered (or document "in prep"), and any other relevant documentation, must be submitted to the City of Toronto in order to obtain verification that no MLTT is payable on registration.

NOTE: If verification is being sought due to the transfer being to or from a Trustee, an affidavit following the Province's Guide to the Requirements to Evidence NIL Value of Consideration for Conveyances Involving Trusts should be submitted and may be found on the Ministry's website.
 

Please forward documents to:

North York Civic Centre
Revenue Services
5100 Yonge Street, Lower Level
Toronto ON M2N 5V7

See form for required attachments and complete instructions.

Form: MLTT Affidavit

For Non-Electronic Registrations, Please Note:
The Land Registry Office will not request any evidence of verification that no MLTT is payable, nor will the verification form part of the registered document.

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Registration of Conveyances or Payment of the Provincial Land Transfer Tax and MLTT at the Land Registry Office or Ministry of Revenue

Neither the Toronto Land Registry office nor the Ministry of Revenue in Oshawa are able to process any payments of the MLTT.

Documentation Requirements
The City of Toronto requires copies of all documents that you submit either to the Land Registry Office or Ministry of Revenue.

If you wish to pay the MLTT owing at either of these locations, please fill in a consent form giving the Toronto Land Registry Office or the Ministry of Revenue your consent to forward the MLTT payment and other documentation to the City of Toronto on your behalf.

Neither Ministry nor Land Registry staff will review your documents and are not responsible for ensuring that any payment(s) and/or documents submitted are correct and complete.
 

Form: Consent Form
 

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Amending a registered document and paying additional MLTT or obtaining a refund

If, for whatever reason, the value of consideration was incorrectly declared on registration of a conveyance, resulting in either an additional payment or refund, an amended MLTT Affidavit should be forwarded to the City along with any payment and supporting documentation.

NOTE: With regard to any refund applied for under the Land Transfer Tax Act, payment will be made only upon receipt of evidence that the Province has agreed to issue a refund for the exact same transaction for the exact same reason.

Form: MLTT Affidavit
 

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Rebate Opportunities: Grandfathering and First-Time Home Purchasers

Grandfathering

The Agreement of Purchase & Sale was executed on or before December 31, 2007 and the closing date is on or after February 1, 2008. In this case you will be eligible for a full rebate.

Effective March 1, 2015, the ability to apply electronically for the grandfathering exemption using Teraview statement 10011 is no longer available.  The MLTT must be paid in full upon registration and an application must be submitted directly to the City of Toronto to receive a rebate.

Rebates claimed after registering

If you are eligible for a rebate under the grandfathering provision an application must be submitted directly to the City of Toronto along with the following documents:


First-Time Purchaser

You are a first-time purchaser of a newly constructed or re-sale residential property, it the following criteria is met:

For conveyances and dispositions before March 1, 2017, and a rebate of up to $3,725:

The definition of a first-time purchaser is:

  • The purchaser is at least 18 years of age.
  • The purchaser must occupy the home as their principal residence no later than nine months after the date of the conveyance or disposition.
  • The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.
  • If the purchaser has a spouse, the spouse cannot have owned a home, nor had any ownership interest in a home, anywhere in the world while they were the purchaser's spouse. If this is not the case, no rebate is available to either spouse.

 

For conveyances and dispositions of the eligible home on or after March 1, 2017, and a rebate of up to $4,475:

The definition of a first-time purchaser includes all of the above, and:

  • The purchaser is a Canadian citizen or permanent resident of Canada. If the purchaser becomes a Canadian citizen or permanent resident within 18 months of the transfer, they may apply for and may qualify for the rebate.


If you are eligible for a rebate of all or a portion of the MLTT you owe, your lawyer will be able to claim the rebate electronically through Teraview software when he/she registers your transfer/deed.

Rebates claimed after registering

If you did not claim the exemption at the time of registration and paid all of the MLTT owing, an application for the rebate can be submitted directly to the City of Toronto along with the following documents:

  • a completed Municipal Land Transfer Tax Rebate/Exemption Application
  • a completed Supplementary Information Form
  • a completed MLTT Authorization of Representative form
  • a copy of the registered conveyance (transfer/deed)
  • a copy of the docket summary (if transfer was registered electronically)
  • a copy of the agreement of purchase and sale (including all schedules, amendments and assignments)
  • a copy of the statement of adjustments relating to the conveyance
  • a copy of documents that provide proof of occupancy of the home dated within 9 months of the date of registration, such as copies of telephone/cable bills, driver's licence etc. (utility bills such as heat, hydro and water are not acceptable forms of proof of occupancy)

Please forward documents to:

Revenue Services
Municipal Land Transfer Tax
5100 Yonge Street, Lower Level
Toronto ON M2N 5V7

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Unregistered dispositions of a Beneficial Interest in Land

Where there has been an unregistered disposition of a beneficial interest in land, such as the purchase of shares in a co-op unit, a copy of the Ministry of Revenue's Return on the Acquisition of a Beneficial Interest in Land form, together with copies of all documents submitted to the Ministry, should be attached to the City of Toronto's Return and forwarded to the City's Revenue Division, together with payment of the MLTT.

Note: The grandfathering and first time home buyer rebate provisions also apply to unregistered dispositions and the appropriate rebate affidavit should accompany the return, if applicable.

Further information on the Province's Land Transfer Tax and unregistered dispositions is available on their website.

Please send all documents to:
City of Toronto
North York Civic Centre
Revenue Services
5100 Yonge Street, Lower Level
Toronto ON M2N 5V7

Form: Ministry of Revenue's Return on the Acquisition of a Beneficial Interest in Land

Form: City of Toronto's Return on the Acquisition of a Beneficial Interest in Land/Application and Undertaking for the Deferral of Municipal Land Transfer Tax

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Deferral of Municipal Land Transfer Tax resulting from an unregistered disposition between affiliated corporations

In order to apply for the deferral, you must submit a copy of the Ministry of Revenue's Return on the Acquisition of a Beneficial Interest in Land, together with copies of all documents given to the Ministry as part of the application, as well as the City of Toronto's Return and Application and Undertaking for Deferral of MLTT. As security for the deferred tax, the City requires a letter of credit equal to the tax and three (3) years of interest, based on the MLTT interest rate set out in the bylaw.

Note: The City will grant the deferral once evidence has been submitted that the Ministry of Revenue has granted the deferral for the same transaction

Please send all documents to:
City of Toronto
North York Civic Centre
Revenue Services
5100 Yonge Street, Lower Level
Toronto ON M2N 5V7

Further information on the Province's Land Transfer Tax and unregistered dispositions is available on their website.

Form:Ministry of Revenue's Return on the Acquisition of a Beneficial Interest in Land

Form: Letter of Credit

Form: City of Toronto's Return on the Acquisition of a Beneficial Interest in Land/Application and Undertaking for the Deferral of Municipal Land Transfer Tax

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Authorizing or Canceling a Representative/Change of Address for Service

The Authorizing or Canceling form must be submitted to the City of Toronto to authorize or cancel a representative or change an address for service.

Form: Authorizing or canceling a representative/Change of Address for Service

Delivery of Payment and Documents

Except when Municipal Land Transfer Tax is being collected by Teranet, the Municipal Land Transfer Tax is payable by certified cheque or bank draft payable to the Treasurer, City of Toronto.

The City of Toronto will issue Certifications of Payment or Verifications that no Municipal Land Transfer Tax is Payable at the following location only:

North York Civic Centre
Revenue Services
5100 Yonge Street, Lower Level
Toronto ON M2N 5V7

For your convenience, documents may also be dropped off at the following locations. Please note that no receipt will be issued for deliveries at the following locations:

Toronto City Hall
Tax & Water Counter
100 Queen St. West
Toronto, ON M5H 2N2

Ministry of Revenue
33 King Street West
P.O. Box 625
Oshawa, ON L1H 8H9

Toronto Land Registry Office
Ministry of Government and Consumer Services
4th Floor, 20 Dundas Street West
Toronto, ON M5G 2C2