HST and its affect on Homeowners, buyers and sellers.
The new (HST) 13% tax will apply to things like your electric bill, gas bill, water bill, condominium fees, insurance premiums, and every other goods and services you purchase. There are little to no exemptions. The current (or old) Ontario PST tax does not apply to services, nor does it apply to the purchase of certain goods. The new 13% tax will extend the old 8% PST tax rate to the purchase of all goods and all services too.
The New 13% Tax Will Apply To The Purchase of All New Homes
The new harmonized GST/PST will also apply to all purchases of all new homes. If a person were to purchase a new $1 million dollar home in Toronto, they would have to pay roughly $200,000 in taxes as a result of the Ontario land transfer tax, the new city of Toronto Land transfer tax, and the new harmonized 13% GST/PST. However with the new harmonized tax (HST), the buyer of a new home priced under $400,000 would receive a rebate of 75 per cent of the provincial portion of the sales tax. Effectively, the builder of a $400,000 home would charge the consumer roughly $2,000 in provincial sales tax or HST.
Canadians have had two things that they have always been able to count on as being tax free - things that they could use to save money and accumulate wealth.
Your: (a) primary home; and (b) RRSP.
The extension of the new 13% GST/PST to homes could be viewed as a tax addon by the government on your primary home. Why? Because it could be assumed that if a purchaser has to pay extra taxes to buy your home, the purchaser is going to pay less to you for your home. The purchaser will reduce the amount he or she is willing to pay to you in order to pay all the taxes.
Dalton McGuinty claims "no one is complaining" about the new HST. So we need to get vocal here. Our silence may cost us and our children allot. Here is a website where you can sign a petition against the HST and have it heard in Ottawa www.unfairtaxgrab.com . Here is what they have had read into the Legislature already here .
Together we may be able to stop the HST. But only if everyone voices their opinion.