GTA to take biggest hit because of high number of homes over $400,000, analysis warns
(Source: The Toronto Star)
Premier Dalton McGuinty’s scheme to harmonize sales taxes threatens 21,200 construction jobs and will cost buyers of new homes at least $800 million, a housing industry analysis warns.
The melding of the 8 per cent provincial sales tax with the 5 per cent GST on July 1, 2010, will be especially onerous to buyers in Greater Toronto due to higher house prices, says the report commissioned by the Building Industry and Land Development Association (BILD).
GTA purchasers will pay $575 million of the $800 million, wrote Altus Group’s Frank Clayton, who prepared the 28-page report, the first detailed examination of the new tax’s impact since it was announced in the March 26 budget.
Read Robert Benzie and Susan Delacourt’s full article “Harmonized tax to cost homebuyers $800M” in the Toronto Star (April 4, 2009).