Harmonized Sales Tax Not Yet in Effect
June 10, 2009 -TREB- The provincial government has announced that it intends to combine the eight percent Provincial Sales Tax with the five percent federal Goods and Services Tax, creating a 13 percent Harmonized Sales Tax (HST). The HST is NOT YET IN EFFECT. The provincial government has indicated that it intends to bring the HST into effect beginning on July 1, 2010. Details regarding any implementation transition rules have not been provided by the provincial government.
Background
• HST will not apply on the purchase price of re-sale homes.
• With regard to newly constructed homes, the provincial government has indicated that it will provide a rebate to ensure that, on average, new homes under $400,000 would not be subject to an additional tax burden. Homes priced between $400,000 and $500,000 would be eligible for a portion of the rebate (detail not yet provided by government), and homes priced above $500,000 would be subject to the full HST.
• HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions.
Additional information will be provided as it becomes available.