Tax bill mailing
The annual tax bill is usually sent in the month of January of each year. Therefore, during the year of acquisition, you will not receive a tax bill in your name but you will receive a document confirming your acquisition.
Visit to the notary
Ordinarily, when you sign your purchase agreement at the notary’s office, the notary advises you regarding the amount of taxes to be paid and the due dates for the current year. If this is not the case, please contact the Municipality’s taxation department to obtain the necessary information to avoid incurring interest.
Municipal taxes are linked to the property and not to the property owner. If there are unpaid balances at the time of acquisition, you are responsible for them as the new owner. You must pay them and try to recover them from the seller, if the notary’s distributions were not settled with outstanding sums.
Real estate transfer duties
Provincial law requires that a person pay real estate transfer duties. Quebec municipalities must collect a fee on the transfer of any immovable located on its territory, with certain exceptions provided for in the law. To benefit from these exemptions, the notary must enter, on the deed of sale, the article of law corresponding to the exemption request. The Municipality of Rawdon reserves the right to request additional documents to justify the request for exemption. The transfer fee is payable in one installment 30 days after the account is sent.
For information on the possible payment methods, please click here.
How to calculate your transfer tax?
How to calculate your land transfer tax?
The first installment is $0 to $51 700 at a rate of 0.5 %
The second installment is $51 700.01$ to $258 600 at a rate of 1 %
The third installment is $258 600.01 to $500 000 at a rate of 1.5 %
The fourth installment is $500 000.01 or more at a rate of 3 %
Comparative factor 2020 : 1.04
A supplementary duty of $200 per transferred immovable is imposed on the purchasers whose transaction is exempt from the real estate transfer tax. The supplementary duty is not charged in one single case only, that is when transferring an immovable, as a result of a person’s death, to someone who was directly related to the deceased (spouse, ascendant or descendant).
Amendments to the Act governing real estate transfer duties
Various amendments have been made to the Loi concernant les droits sur les mutations immobilières (Act governing real estate transfer duties). In particular, it provides for the establishment of two disclosure mechanisms, namely:
- A disclosure mechanism where the ownership of at least 90% of the voting shares ceases within 24 months of the transfer of the property ;
- A disclosure mechanism when transferring a property that is not registered on the land registry within 90 days of the transaction.
In order to facilitate the management of these mandatory disclosure mechanisms, the Municipality provides you with forms containing all of the information required by the government. These notices of disclosure must be sent to the Municipality within the following deadlines:
- Within 90 days of the termination of the holding of at least 90% of the shares with full voting rights, when an exemption has been granted under section 19 of the Loi concernant les droits sur les mutations immobilières (Act governing real estate transfer duties);
- Within 90 days of the transfer of an immovable that has not been registered on the land registry within this period.
Revenu Québec will impose a supplementary duty equal to 150% of the real estate transfer tax on the transferees who have failed to file the notice of disclosure to the Municipality.
Amendments regarding former common-law partners
The government of Québec’s 2016-2017 budget also introduced amendments to the Loi concernant les droits sur les mutations immobilières (Act governing real estate transfer duties) by including an exemption from the payment of transfer duties when the transfer is made between former common-law partners, within 12 months of the date they ceased to be spouses due to the failure of their union. When such an exemption is requested, the Transfert d’un immeuble entre ex-conjoints de fait must be filled out and submitted to the Municipality of Rawdon.
For more information, please do not hesitate to contact us at 450 834-2596, ext. 7112.