The tax on new construction priced less than rebate threshold of $525,000 will be no greater after July 1 than it is today
The excitement is building. There are only five more sleeps until HST becomes a reality in B.C.
Facetiousness aside, and despite the relentless protests against the harmonization of the federal and provincial sales taxes in this province, get ready to dig a little deeper into your pockets on July 1.
Great way to celebrate Canada Day and the start of the summer vacation season, huh?
Regarding new homes, there are some misconceptions about the new tax. First off, the HST, like the GST, will not apply to existing homes. Second, if the new home is priced below the rebate threshold of $525,000, buyers will pay no more tax after July 1 than they currently pay under GST.
And although it might be obvious that five per cent GST and seven per cent PST equal 12 per cent, buyers of new homes priced above $525,000 will not pay the full 12 per cent for their homes because various rebates and tax credits apply. But make no mistake, some homebuyers are still going to feel the sting…
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Posted by: Peter Simpson
Date: June 26, 2010
