Saturday, November 28, 2009 HST, what to expect?by Violetta Joziak on Sat, Nov, 28, 2009 02:22 PM HST will take effect on July 1, 2010. What does it mean to home buyers? I sense a bit of a panic from my clients mostly, because of lack of understanding of how will HST affect property purchase.
HST combines a 7% B.C. rate with the 5% federal GST. Therefore, at 12 %, B.C. would have the lowest HST rate in Canada.
In a recent press release, Finance Minister Colin Hansen announced that the threshold for B.C. HST new housing rebate will increase from $400,000 to $525,000. This will ensure that, on average, purchasers of new homes up to $525,000 pay no more tax due to harmonization.
Purchasers of new homes would be eligible for a rebate of 71.43 per cent of the provincial portion of the HST paid on a new home, up to a maximum of $26,250. Homes above $525,000 would receive a flat rebate of $26,250. This enhanced rebate represents a 30 per cent increase in the threshold and maximum rebate available. As a result, purchasers of homes priced up to $525,000 would pay no more tax, on average, than under the current PST. |
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