February 5, 2010
The HST is a confusing policy move. Many Ontarians think it’s just another provincial government tax grab, while politicians insist that it will not increase their tax revenue at all. But, if the policy remains as is, it will not be revenue neutral for homebuyers.
Homebuyers already pay GST, but are currently exempted from the PST. With the new HST, they will be effectively paying for BOTH. And it doesn’t stop there. Homebuyers also pay Land Transfer Tax (LTT) and in Toronto we also pay a Municipal Land Transfer Tax. Fawk!
So…what gives? This supposedly ‘revenue neutral’ policy seems to be adding another tax to an already overtaxed purchase: homes. After all, isn’t buying your own home a good thing? Yourhome.com is calling for the provincial government to offset the tax by decreasing the LTT:
Most importantly, the provincial government should take a serious look at its current land transfer tax (LTT), which, if left as is, would mean that homebuyers are paying, not two sales taxes (provincial and federal), but three! Yourhome.ca
Ever heard the phrase bad things come in three’s? Yeah…I think this is one of those daunting triplets.