Under the Act respecting duties on transfers of immovables (R.S.Q., c. D-15.1), the City must collect duties on the transfer of any immovable situated within its territory.
Duties on transfers of immovables, commonly known as the “welcome tax,” are imposed when a property is acquired. The invoice is usually sent a few weeks after the transaction is registered with the notary and is payable in a single payment.
The duties are computed in relation to the basis of imposition established according to the following rates:
- 0.5% on the first $50 900;
- 1.0% on amounts from 50 900.01 to $254 400;
- 1.5% on amounts from 254 401 to $500 000;
- 2.25% on amounts exceeding $500 000.
The basis of imposition shall be the greatest of the following amounts:
- the amount of the consideration furnished for the transfer of the immovable;
- the amount of the consideration stipulated for the transfer of the immovable;
- the amount of the market value of the immovable at the time of its transfer.
- When acquiring a property, make sure that the portion of the municipal taxes covering the period before your purchase has been paid by the previous owner as you will become liable for any amounts due. Usually, the municipal tax adjustments between the seller and the buyer are done at the notary’s office.
- The city will not issue a new tax bill when a property is sold. It is your responsibility to obtain a copy from the former owner or the city by contacting the Finance Department at 418 844-3778. The tax bill is only issued once a year and is connected to the property, not the owner.