(Source: The Star)
The following commentary is by Stephen Dupuis in the Star’s yourhome.ca section.
I promise I will stop writing about sales tax harmonization someday but the more information that comes to light, the more indignant I get.
There are so many things wrong with the way tax harmonization (HST) is being applied to GTA new home buyers and the renovation sector that it’s hard to know where to start. So let’s begin with the grossly unfair aspects of the tax.
According to an Altus Group memorandum prepared for the Canadian Home Builders’ Association, 85 per cent of the $800 million province-wide increase in sales taxes on new homes in Ontario will be paid for by 45 per cent of the buyers and guess where those buyers live? Yup, right here in the GTA.
The HST unfairly discriminates against home buyers in the GTA. Province-wide, just 27 per cent of homes are priced above the $400,000 threshold, but that ratio rises to above 40 per cent in the GTA. Given the size of the market here combined with the higher volume of more expensive homes, GTA new home buyers get hit the hardest.
Read the full article by Stephen Dupuis “Tax hits new home buyers in GTA hardest” in the Toronto Star (May 18 2009)