City of Montréal: Modification of transfer duties

Written by Cassandre Louis

On December 14, 2021, the City of Montréal adopted an amendment to its By-law 10-007 concerning the rate of transfer duties applicable to transfers whose basis of imposition exceeds $500,000

Pursuant to this amendment, as of February 1, 2022, an additional portion for any basis of imposition equal to or greater than $3 million will be created and subjected to a rate of 4%. The rate for the portion starting from $2,059,000 will be increased to 3.5%.

Portion of the basis of imposition as of February 1, 2022

Rate

Not exceeding $53,200

0.5%

$53,200 to $266,200

1%

$266,200 to $532,300

1.5%

$532,300 to $1,064,600

2%

$1,064,600 to $2,059,000

2.5%

$2,059,000 to $3,000,000

3.5%

Exceeding $3,000,000

4%

The thresholds and rates for 2021 were as follows:

Portion of the basis of imposition

Rate

Not exceeding $52,800

0.5 %

$52,800 to $264,000

1%

$264,000 to $527,900

1.5 %

$527,900 to $1,055,800

2%

$1,055,800 to $2,041,900

2.5 %

Exceeding $2,041,900

3%

For the period from 1 January 2022 to 31 January 2022, the thresholds and rates are as follows:

Portion of the basis of imposition

Rate

Not exceeding $52,200

0.5 %

$53,200 to $266,200

1%

$266,200 to  $527,900

1.5 %

$527,900 to $1,055,800

2%

$1,055,800 to $2,041,900

2.5 %

Exceeding $2,041,900

3%

Note that transfer duties must be paid on the transfer of the right of ownership on an immovable, the establishment of emphyteusis and the transfer of the rights of the emphyteutic lessee, as well as a contract of lease of an immovable that exceeds 40 years. Certain exemptions may apply.

The basis of imposition is the greatest of the following amounts:

1°  the amount of the consideration furnished for the transfer of the immovable. This is generally the price paid;

2°  the amount of the consideration stipulated for the transfer of the immovable. This is generally the amount indicated in the deed of transfer;

3°  the amount of the market value of the immovable at the time of its transfer. This is the property value entered on the property assessment roll multiplied by the comparative factor.

>>To learn more about transfer duties, talk to one of our municipal law professionals.

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