Buying or selling real estate in St. John's, Newfoundland and Labrador, can be an exciting and rewarding experience, but it's important to understand the taxes and fees associated with property ownership. In this comprehensive guide, we'll explore the various taxes and fees that buyers and sellers should be aware of.
Property Taxes
According to the City of St. John's website, property taxes are determined by the assessed value of the property and paid annually. As of 2023, the property tax rate for residential properties in St. John's is 6.7 mills (or $6.70 per $1,000 of assessed value), while the tax rate for commercial properties is 23.2 mills (or $23.20 per $1,000 of assessed value). As a buyer, it's important to understand the current property tax rate and how it may affect your monthly mortgage payments. As a seller, you'll want to ensure that your property is up to date on property tax payments to avoid any issues during the sale.
Business Taxes
If you're buying or selling commercial real estate in St. John's, you may be subject to business taxes. According to the City of St. John's website, the current business tax rate is 3.7% of the net annual rental value of the property. It's important to understand this tax rate and how it may impact the value of the property.
Water and Sewer Fees
Water and sewer fees are based on the amount of water used and are collected by the City of St. John's. According to the City's website, the current water rate is $1.97 per cubic meter, while the sewer rate is $2.45 per cubic meter. As a buyer, you'll want to ensure that the property you're considering is up to date on these fees to avoid any service disruptions. As a seller, you'll want to make sure that these fees are paid in full prior to the sale.
Garbage Collection Fees
Garbage collection fees are included in the property tax bill for residential properties in St. John's, but commercial properties are charged separately based on the size and frequency of collection. According to the City of St. John's website, the current commercial garbage collection rate is $202.95 per month for a 4 cubic yard container serviced once per week. As a buyer or seller, it's important to understand these fees and budget accordingly.
Other Taxes and Fees
There are a variety of other taxes and fees that may apply when buying or selling real estate in St. John's, including vehicle taxes, dog licenses, and building permits. According to the City of St. John's website, the current vehicle tax rate is 18% of the value of the vehicle, while a dog license costs $50 per year. Building permit fees vary depending on the type and scope of the project, but information can be found on the City's website.
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