Taxes for New Condos
Bob Aaron wrote an article in February 2016 in the Toronto Star regarding a municipal tax issue that can happen during the interim occupancy period of new condo buildings. He stated that many builders typically calculate the tax component of the interim occupancy fee by taking the purchase price found on the front page of the offer and multiplying it by 1.0%. This result is divided by 12 to arrive at the monthly charge. This article provided an example of a large overpayment because the tax was calculated on the purchase price found on the front page of the offer and not the purchase price minus the HST.
Take the time to read the article that Bob Aaron wrote on February 13, 2016 to see what the correct tax should have been.
In dealing with your lawyer on closing be sure to review this item very carefully.