HST and Real Estate

11 06 2010

The Ontario HST effective July 1st, 2010, is the combining of the 8% provincial sales tax and the 5% federal goods and services tax (GST) to have a single 13% harmonized sales tax (HST).

Government says that it will help Ontario businesses be more competitive in the world stage. It will create jobs and help Ontario’s economy to be more effective internationally. The new harmonized sales tax (HST) will reduce paperwork for Ontario businesses by over $500 million/year.

What does the HST mean to Consumers?

The following items are currently exempt from the 8% PST which WILL be affected by the HST:

  • Gasoline
  • Heating fuels (natural gas, oil, etc)
  • Hydro
  • Tobacco
  • Services: Haircuts, Gym Memberships, Magazines, Taxis, Legal service fees (Lawyers), Architects, Accountants, and Real Estate Commissions.

The following is a list of what will not be included in the HST following July 1st:

  • Groceries
  • Prescription Drugs
  • Medical devices
  • public transit
  • health and education services
  • Legal Aid
  • Financial services
  • Child care
  • Tutoring
  • Music Lessons
  • Residential Rent
  • Condominium maintenance fees

The HST and Real Estate:

HST will not be charged on residential rent, condominium fees and purchasing a resale home.

The HST will however, be applicable on the purchase of new homes. Buyers will be able to claim a rebate for some of the portion of the tax for new homes that are priced up to $500,000. Rebate for new homes priced less than $400,000 will be 6% of the purchase price and the amount reduced for homes priced between $400,000 and $500,000.

The HST will apply on real estate commissions.

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2 responses

2 12 2010
Rain Jacket

new homes these days are made of energy efficient insulations and most of them use environment friendly materials too ::”

17 12 2010
stevenhorealestate

and what about all the houses that have been built prior to everyone going “green”?

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