3.01 Tax On Residential Property Exceeding $3 Million

3.01 (1) In this section:

• “residential property” means “residential property” as defined in section 2.01 except that, in applying that definition for the purposes of this section, paragraph (a) of the definition is to be read as if the words “but does not include prescribed land or improvements” were excluded;
• “residential property value”, in relation to a residential property, means the value of the residential property as described or determined under subsection (3).
• (2) This section applies in respect of a taxable transaction referred to in section 3(1) if

• (a) the subject matter of the taxable transaction includes residential property, and
• (b) the residential property value exceeds $3 000 000.

• (3) For the purposes of this section, the value of a residential property is,

• (a) if the subject matter of the taxable transaction includes only residential property, the taxable transaction's fair market value, or
• (b) if the subject matter of the taxable transaction includes land that is not residential property, the value calculated as follows:

Where

• VTT is the taxable transaction’s fair market value;
• VFS is the value of the fee simple interest in the land that is the subject matter of the taxable transaction, determined

• (a) as though that land were being transferred in a taxable transaction referred to in paragraph (a)(i) of the definition of “taxable transaction” in section 1(1), and
• (b) in accordance with paragraph (a) of the definition of “fair market value” in section 1(1);

• VRP is, in respect of the residential property included in the subject matter of the taxable transaction and subject to the regulations, the amount determined

• (a) as though that residential property were being transferred in a taxable transaction referred to in paragraph (a)(i) of the definition of “taxable transaction” in section 1(1), and
• (b) in accordance with paragraph (a) of the definition of “fair market value” in section 1(1).

• (4) If this section applies in respect of a taxable transaction, the amount payable under section 3(1)(d) is 2% of the amount by which the residential property value exceeds $3 000 000.

2018-8-58.