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1.2 Fair Market Value Of Property Subject To Certain Interests

In This Volume

1.2 (1) In this section:

  • “interest of the previous holder” means the interest of the previous holder referred to in the definition of “previous holder”;
  • “new holder” means the person who, through a taxable transaction, acquires an interest in land
  • (a) as beneficiary, if the interest is held in trust, or
  • (b) as transferee, if paragraph (a) does not apply;
  • “previous holder” means a person who, immediately before the registration of a taxable transaction, held an interest
  • (a) as beneficiary, if the interest was held in trust, or
  • (b) as legal and beneficial owner, if paragraph (a) does not apply,
  • in the same land to which the taxable transaction relates.
  • (2) Subject to section 1.1 and subsection (3) of this section, this section applies in relation to a taxable transaction if
  • (a) the previous holder and the new holder are the same person or are related persons, and
  • (b) the interest of the previous holder was not registered in the land title office or, when that interest was registered, tax under this Act was not payable.
  • (3) This section does not apply if the interest of the previous holder
  • (a) was registered before March 23, 1987, or
  • (b) was a registered interest in the estate in fee simple as a joint tenant or a tenant in common.
  • (4) For the purposes of determining the fair market value of an estate in fee simple in relation to a taxable transaction to which this section applies, the fair market value is deemed to be the fair market value of the estate in fee simple determined in accordance with paragraph (a) of the definition of “fair market value”, but as if the fee simple were not subject to the interest of the previous holder.

2000-22-53, effective March 28, 2000; 2003-3-29, effective February 19, 2003.