Ontario and B.C. homebuyers face a big tax hike

(Source: Financial Post)

The new harmonized sales tax being proposed in British Columbia and Ontario may end up being an overall wash for some consumers but anyone buying a new house is about to get dinged.

The HST met with some resistance from the real-estate sector in Canada’s largest province when it was first proposed earlier this year but the government agreed to some concessions.

New homes in Ontario currently just face a 5% goods-and-services tax, which builders have buried in the price of the home since the tax was introduced 19 years ago. Starting on July 1 of next year, new houses would face a combined HST which would be 13% in Ontario.

Read Gary Marr’s full article “Buy now! HST is on the way” in the Financial Post (September 5, 2009).

Further Reading:

New HST tax could trigger mini boom (August 30, 2009)

Ontario MPP to present HST plan to 250 condo managers…”He’s going to get roasted alive”… (August 29, 2009).

VANCOUVER SUN: “HARMONIZE THIS – HST will hit condo maintenance fees” (August 22, 2009)

Globe and Mail: HST may scuttle Ontario condo deals (July 5, 2009)

HST: McGuinty softens tax on new homes (June 22, 2009)

There is no harmony in Ontario’s harmonized sales tax (June 8, 2009)

Toronto real estate market recovers, but HST storm cloud looms (May 20, 2009)

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