Will Manitoba go the way of HST?

For quite some time the down east provinces have lived with the HST.
Nova Scotia, New Brunswick, and Newfoundland and Labrador have combined their respective provincial sales taxes with the GST to create a harmonized sales tax (HST) in each of these provinces. The HST rate in these three provinces is 13%, composed of a 5% federal part (equal to the 5% GST) and an 8% provincial part.
Under proposed changes, effective July 1, 2010, Ontario and British Columbia (BC) would combine their respective provincial sales taxes with the GST to create an HST in each of these provinces. The HST rate for Ontario will be 13% (a 5% federal part and an 8% provincial part). The HST rate for BC would be 12% (a 5% federal part and a 7% provincial part).
How will this affect the housing costs to our neighbours in Ontario?
The HST will result in a 13% tax on new home construction, but my post today will concern those ancillary costs pertaining to the buying and selling of resale residential real estate properties in Ontario...
First, the good news....there is no HST tax payable on the sale of a resale home (residential). So the single largest dollar amount exchanged is not taxable under HST.
However, under the harmonized sales tax (HST), home buyers and sellers will have to pay extra tax on a range of services associated with the real estate transaction: services such as legal fees, moving costs, real estate commissions and home inspection fees. Currently, consumers only pay the 5% Goods and Services Tax (GST) on these services.
So in time will Manitoba follow suit? Time will tell.
To sum all this up we would say that Winnipeg has been and continues to be a good place to buy real estate.

Call us, we can help you.
(204) 987-2100 or 1 888-880-2121
tracey@gerrycarriere.com, gerry@gerrycarriere.com

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Tracey Anderson

Tracey Anderson

CENTURY 21 Bachman & Associates
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