Despite vigorous opposition by Ontario Real Estate Association (OREA) and other groups, the Government of Ontario and the Government of Canada have both passed legislation that will implement the Harmonized Sales Tax (HST).
The Government of Ontario held only one day of public hearings on Bill 218.
Speaking on behalf of Ontario REALTORS® and homeowners, OREA was among the select number of groups to present to the committee.
The HST effectively combines the eight per cent Provincial Sales Tax (PST) with the federal Goods and Services Tax (GST) for a combined 13 per cent sales tax rate.
The HST will come into force on July 1, 2010 - only 6 months away - applying the PST to a number of goods and services that are currently exempt from the PST.
For housing, the HST will add eight per cent more tax on services related to real estate transactions including legal fees, real estate commissions, home inspections and moving costs.
OREA estimates that the HST will add about $1,500 in new taxes to the costs of an average residential real estate transaction!
What are your thoughts about this and the process by which the decision was made by the government of Ontario? Leave your comments below.