Be expecting a blended sales tax next year
The government has approved a bill for a harmonized sales tax. This will combine the G..S.T(5%) and P.S.T(8%) portions into one sales tax of 13%. The plan was aimed to save companies money on invoicing and paperwork, increasing productivity. This may be the case but it takes a larger effect on the general public, especially in a time of economic hardship like the one were in now. The plan is to offset the tax by providing family households, who’s income was less than $160 000, with three cheques throughout the year totaling $1000. There will be things exempt from the tax such as home heating fuels, childrens diapers and shoes, books, car seats and more but be prepared to pay more when purchasing a home. For new homes being purchased under $400 000 only 5% GST will still apply, houses between $400 000 and $500 000 will have partial tax and anything past $500 000 will be taxed at 13%. I’m still trying to get my hands on a list of other services that will be taxed, hopefully the government has made provisions for closing costs such as legal fee’s, adjustments and mortgage insurance which only were taxed with P.S.T. Three atlantic provinces have already adapted the system as well as Quebec and have said that it has worked well for their economy. I’ll keep you posted but in the mean time why don’t you comment and share what you think on the matter.
{ 7 comments… read them below or add one }
@Everyone
Just found out that you will now be paying more for your legal costs, your real estate commission fee, your home inspection fee as well as your title insurance fee. Be expecting to pay the full harmonized sales tax of 13% on all of the above items listed starting July 1, 2010
@Everyone
You can see how the tax would increase the cost of purchasing a $500 000 house by around $40 000.
http://tinyurl.com/cptub3
If i didnt know any beter, I would swear the government is trying to suffocate the housing market! Don’t they know this market is the backbone of the economy??? I would love to say our policy makers are asleep at the wheel, but I’m quite sure this is carefully orcistrated by our inherently CORRUPT GOVERNMENT!!!!
UNITE! SPREAD THE WORD!! THE GOVERNMENT SHOULD FEAR ITS PEOPLE, NOT VICE VERSA!!!!!!!
@ Jeff
I agree with Jeff that we need to unite and stand up together in order for our government to notice us. These taxes will effect the already lagging sales numbers in the housing market. Please step up and contact your local government official and let him know how you feel. Although I am aware of more corrupt governments then our own, I do feel that the government has disappointed us once again and can see where Jeff’s anger is coming from.
Paul, thanks for the info on the harmonized sales tax. I wanted to provide your clients with a link to express their outrage and send an automatic letter to their MPP. This link has come in handy for me with my clients.
http://tinyurl.com/co622w
They also are appreciating the Realty tip page
http://tinyurl.com/d673yw
@Rick Saini
Rick, thanks for the complaint link. I love how it’s so simple and automated. Just wanted to thank you for the tips page, we have been getting good feedback from it.
@Everyone
Consumers will only see government rebate cheques, totaling $1000 during the first year of harmonization, while being saddled with higher costs for years to come.
http://tinyurl.com/dlww7o