New Harmonized Sales Tax (HST) Update

The recently announced HST which is scheduled to take effect on July 1, 2010, will combine the existing 5% GST with the 8% PST on most goods and services. While existing homes will be exempt from the HST, it will apply to services such as moving costs, legal fees, home inspection fees and REALTR commissions. It will also apply to the purchase price of newly constructed homes.

However, the government has now announced some significant changes in how this new tax will apply to newly constructed homes versus what they announced originally. The revised plan is to apply the additional 8% across all price ranges of new homes subject to a 75% rebate up to a maximum of $24,000. The net effect of this rebate ill be to add a 2% tax on the first $400,000 of the purchase price of a new home and 8% on the portion above $400,000.

For more information, please visit the following web page: www.rev.gov.on.ca/english/notices/str/02.html

Jennifer Jones

Jennifer Jones

REALTORĀ®
CENTURY 21 Millennium Inc., Brokerage*
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