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6 (1) Subject to subsection (3), if a qualifying property that is the subject matter of an eligible transaction is larger than 0.5 ha in area, a transferee who qualifies for an exemption under section 5 is exempt from the obligation to pay tax under section 2(1)(a) on that transaction

  • (a) in respect of that portion of the fair market value of the property that is applicable to the residential improvement in which the transferee establishes a qualifying residence within the meaning of section 8(2) on the property, and
  • (b) in respect of that portion of the fair market value of the property, not including improvements, that is equivalent to the ratio of 0.5 ha to the total area of the property.
  • (2) Subject to subsection (3), if a qualifying property not referred to in subsection (1) is the subject matter of an eligible transaction and has improvements on it that are in addition to the residential improvement in which the transferee establishes a qualifying residence within the meaning of section 8(2), a transferee who qualifies for an exemption under section 5 is exempt from the obligation to pay tax under section 2(1)(a) on that transaction
  • (a) in respect of that portion of the fair market value of the property that is applicable to that residential improvement, and
  • (b) in respect of the fair market value of the property, not including improvements.
  • (3) If the fair market value of a qualifying property exceeds the qualifying value of the property, the exemption under subsection (1) or (2) is the amount calculated as follows:
         
  E x (QV + 25 000 – FMV)  
      25 000  

Where

  • E is the amount of the applicable exemption under subsection (1) or (2),
  • FMV is the fair market value of the qualifying property, and
  • QV is the qualifying value of the qualifying property.

11987-15-3.22; 1994-14-4, effective March 23, 1994; 2003-3-32, effective February 19, 2003.