An Alberta farmer owns 640 acres of productive farmland. How is this land taxed differently from a comparable-sized parcel zoned for residential development?
Correct Answer
B) Farmland is assessed at its regulated agricultural productive value, not market value, so taxes are much lower
Under Alberta's Municipal Government Act, farmland is assessed based on its regulated agricultural productive value rather than market value. This regulated rate, set by the province based on soil quality, is typically much lower than what the land could sell for at market value. This policy supports agriculture by keeping property taxes affordable for farmers.
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- → In Ontario, what is the standard Land Transfer Tax rate for a residential property purchase of $400,000?
- → Which of the following best describes when land transfer tax is typically paid?
- → A first-time buyer purchases a $450,000 home in Ottawa, outside the City of Toronto. Which land transfer tax relief can they claim?
- → Which type of real estate transaction is generally exempt from GST/HST in Canada?
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- → A buyer purchasing a $2 million commercial property in Alberta asks what provincial land transfer tax will be due on closing. What is the correct response?
- → Under the Income Tax Act, what is the principal residence exemption?
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- → Under Ontario's Assessment Act, how often does the default schedule call for property to be revalued for assessment purposes?
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A property in Vancouver sells for $1,200,000 to a Canadian citizen who is not a first-time buyer. What is the Property Transfer Tax owing?
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