Mutation Tax – a.k.a. Welcome Tax
The mutation tax, also known as the welcome tax, was introduced in 1976. Welcome is the English translation of the last name of the person who sponsored the creation of the tax, Minister Jean Bienvenue.

The welcome tax applies to taxes placed on the transfer of immovable property such as houses and land. It is imposed when ownership of the property is mutated, or transferred, to a new buyer. The buyer is responsible for the payment of these taxes. If there is more than one buyer, they are jointly responsible for the payment of the transfer taxes. Municipalities are required to collect the taxes on any immovable transfer within its territory.

Payable in one installment, transfer duties are imposed at the time of purchase of an immovable property. The basis of imposition, which is the established value of the property, corresponds to the greatest of the following three amounts:
• The amount that was paid for the transfer of the immovable property, not including the goods and services tax (GST) and the Quebec sales tax (QST)
• The amount of the consideration designated for the immovable property transfer, which is usually the amount shown on the deed of sale
• The amount of the market value at the time of transfer, which is the value of the property assessment multiplied by the comparative factor of the property

The following are considerations:
• The value of the property at the time of transfer
• The amount listed in the contract
• Mortgages and other charges that create a claim against the immovable property