Changes Proposed for HST on New Housing
By Manoj Arora
(ACE TEAM REALTY INC.)
The provincial government has announced some proposed changes to the way it would apply the proposed Harmonized Sales Tax (HST) to the purchase price of newly constructed housing. The provincial government has also announced proposed transitional details for newly constructed properties.BackgroundThe provincial government has announced that it intends to combine the eight percent Provincial Sales Tax with the five percent federal Goods and Services Tax, creating a 13 percent Harmonized Sales Tax (HST). · The HST is NOT YET IN EFFECT. The provincial government has indicated that it intends to bring the HST into effect beginning on July 1, 2010. · HST will not apply on the purchase price of re-sale homes. · HST would apply to services such as moving cost, legal fees, home inspection fees,...