Buying a home? Here's everything you need to know about Quebec's 'welcome' tax
CTV
Anyone who has bought a home in Quebec knows the rollercoaster high of making that big, life-changing purchase – and the sudden crash that occurs when the welcome tax bill comes in the mail, alongside its 30-day payment deadline.
Anyone who has bought a home in Quebec knows the rollercoaster high of making that big, life-changing purchase – and the sudden crash that occurs when the welcome tax bill comes in the mail, alongside its 30-day payment deadline.
The "welcome" tax, officially known as the property or real estate transfer tax, can range from a few thousand to tens of thousands of dollars, depending on how much the home was bought for.
"When any property title is changing hands, the province is taxing that transaction," explains Dr. Brian Wenzel, an associate professor in accounting at McGill University's Desautels Faculty of Management.
It's a municipal-level payment that was provincially established in 1976 – an efficient way for cities to make money without having to pass by higher channels.
"This welcome tax stays inside of Montreal," Wenzel notes. "So, it's a nice benefit for the City of Montreal because it's one of the few areas where they can actually raise revenue without having to ask Quebec City what they can do."
The nickname, "welcome" tax, or "la taxe de bienvenue," comes from then-Quebec Liberal (PLQ) Minister Jean Bienvenue, who was the one who tabled the bill recommending its introduction.
Back then, according to the Quebec Municipal Affairs Ministry, the goal was to allow municipalities to "increase their tax base and become self-financing."
