(HST) Harmonized Sales Tax - Transition Rules
The Ontario government plans to combine the eight percent Provincial Sales Tax with the five percent Federal Sales Tax, creating a 13 percent Harmonized Sales Tax (HST). Many home owners are naturally worried as this would increase costs in purchasing property. In brief. The HST will not take effect until July 1, 2010.
- HST will not apply on the purchase price of re-sale homes.
- HST would apply to all services related to real estate such as , legal fees, home inspection, Realtor's commissions.
- On newly constructed homes, Provincial government is proposing a 75% rebate on the provincial portion of the HST on the first $400,000 dollars. In effect, vastly reducing the impact of the tax for most people and in effect almost maintaining the status quo.
For more details on the Harmonized Sales Tax visit the provincial government's website or call them at 1-800-337-7222.
Jas Jagpal, Sales Representative, 647-272-6629