The B.C. government is giving home buyers and builders a more solid foundation for the transition out of the harmonized sales tax, and says it will officially return to the provincial sales tax by April 1, 2013.
In the meantime, the government will raise the HST rebate threshold for new home buyers to $850,000, up from the current $525,000. That means more than 90 per cent of newly built homes will be eligible for the rebate of up to $42,500.
After the HST-end date, those who buy a home built before April 1, 2013 will have to pay a two per cent transition tax on the full house price.
Minister Falcon says the changes ensure that there is fairness through the transition period and provide a road map for the housing industry to make the transition back to the PST as smooth as possible.
For full details, click here for media release, and here for BCREA notes.
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Jason Neumann