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12.02 (1) Subject to subsection (2) and sections 12.03 to 12.08, a transferee who applies for registration, at a land title office, of an eligible transaction in respect of a qualifying property that, on the registration date, contains a residential improvement is exempt from the obligation to pay tax under section 2(1)(a) on the eligible transaction if

  • (a) the transferee is a qualifying individual on the registration date,
  • (b) the eligible transaction is in respect of either of the following:
    • (i) a qualifying property in respect of which the residential improvement
      • (A) was constructed or placed on the property, and
      • (B) on the registration date, has not been used as a dwelling since the construction of the residential improvement began or since the residential improvement was placed on the property, as the case may be;
    • (ii) a qualifying property that resulted from a subdivision of a parcel and in respect of which the residential improvement
      • (A) was developed from the division of an improvement that was on the parcel that was subdivided, and
      • (B) on the registration date, has not been used as a dwelling since the subdivision of the parcel,
  • (c) the qualifying property does not, on the registration date, contain a residential improvement other than a residential improvement that falls within the description in paragraph (b)(i) or (ii),
  • (d) the application is the first application for registration in respect of the qualifying property,
    • (i) in the case of a qualifying property described in paragraph (b)(i), since the residential improvement was completed or since the residential improvement was placed on the property, as the case may be, or
    • (ii) in the case of a qualifying property described in paragraph (b)(ii), since the subdivision of the parcel, and
  • (e) the transferee applies for an exemption under this section or section 12.03 by tendering with the application for registration an application for exemption.
  • (2) If the fair market value of a qualifying property exceeds the qualifying value of the property, the exemption under subsection (1) is the amount calculated as follows:
         
  PTT x (QV + 50 000 – FMV)  
      50 000  

Where

  • FMV is the fair market value of the qualifying property,
  • PTT is the amount of tax that would be payable on the taxable transaction under section 2(1)(a) but for the exemption under subsection (1) of this section, and
  • QV is the qualifying value of the qualifying property.
  • (3) An application for exemption under subsection (1) must be in the form required by the minister and must
  • (a) disclose that the property to which the eligible transaction relates is a qualifying property, and
  • (b) include a consent, in the form required by the minister, by which the transferee consents to the administrator conducting inquiries respecting the transferee that the administrator considers necessary to confirm the qualifications of the transferee for the exemption.

2016-3-54, effective February 17, 2016.