June 26, 2010
We’ve been fearing it, bashing it, and talking about it forever. Many of us still don’t fully understand it but its now so close we can almost touch it – the new HST is only five days away.
Yet, according to Canada.com, consumers remain suspicious of the HST.
Summed up in a nutshell, the HST (Harmonized Sales Tax) combines the Goods and Services Tax (GST) and Provincial Sales Tax (PST) into a single sales tax. Even though most economists support it and studies show it to be revenue neutral, polls show 90% of British Columbians Ontarians oppose it.
Of interest to us at BuzzBuzzHome is how it will effect the purchase of real estate. The answer to that question is as follows:
RESALE HOMES: Like the GST, it will not apply to existing homes.
NEW CONSTRUCTION: First $400,000 of the purchase is exempt from the HST. In fact, according the Vancouver Sun, the tax on BC new construction homes priced less than $525,000 will be no greater after July 1 than it is today.
Personally, I support the HST – mainly because its simpler to think about and track one tax as opposed to two but also because businesses will now get back all purchase tax whereas currently they only get back GST.