Question

In addition to the provincial land transfer tax, a municipal land transfer tax (MLTT) is charged on properties located in the City of Toronto.

Rates are the same as the provincial land transfer tax rates.
As the buyer's salesperson, you have the responsibility of identifying this additional tax burden before the buyers make their purchasing decision. This is especially important if working with a first-time home buyer who may not be prepared for the additional amount they are required to pay.

A. City Tax Surcharge
B. Municipal Levy
C. Toronto Land Tax
D. MLTT Supplement

Answer 1

The Municipal Land Transfer Tax (MLTT) is an additional tax imposed by the City of Toronto on property transactions, which must be disclosed to potential buyers by the buyer's salesperson.

Step-by-step explanation:

The additional tax imposed by the City of Toronto on property transactions is known as the Municipal Land Transfer Tax (MLTT). This tax is similar to the provincial land transfer tax and applies specifically to properties located within Toronto's city limits. As a buyer's salesperson, it is critical to inform potential buyers, particularly first-time home buyers, about this tax to ensure they are prepared for the extra financial responsibility. Property taxes, such as MLTT, are based on the value of the real estate and are a key source of revenue for local governments, funding services like police, fire departments, and parks, as well as schools on the state level.