BuzzBuzzHome says #HolyShitTax
(Source: Ontario Real Estate Association)
Although organized real estate is still working to derail it, the HST train seems to be headed straight for us and unlikely to be knocked off track. If the Harmonized Sales Tax takes effect in July 2010 as scheduled, it will impact the real estate industry. REALTORS® need to become familiar with how this tax will affect business.
HST is similar to the GST (Goods and Services Tax) in that it will apply a new tax to items that, in the past, would have been subject to only one of the GST or PST. Now these items will be charged both. The harmonized sales tax is a combination in Ontario of the Provincial Sales Tax (“PST” or “RST”) and the federal sales tax (“GST”). PST is currently being charged at eight percent and GST is being charged at five per cent. So, the new HST will be 13 per cent in total.
Read the full brief, “REALTORS® and HST on collision course” at OREA.com (Dec 2009).