Last month when BC govt. announced the plans to implement new tax system HST (harmonized sales tax) in 2010, I wrote a blog post about how it would affect the real estate industry and new home buyers.

Starting July 2010 consumers will have to pay a higher tax on new houses, renovations, REALTORS®' fees and other real estate transaction fees such as notary services, home inspections and appraisals. All of those are currently exempt from the PST and are only subject to the GST.

Just like me most other REALTORS® are concerned that home buyers and sellers, particularly buyers of new homes, will bear most of the burden associated with the proposed Harmonized Sales Tax.

The BC Real Estate Association has launched a new website to provide REALTORS® and members of the public with a >> Read MOre >>

 

Abbotsford Real Estate | Abbotsford Homes | Abbotsford Condos | Surrey Real Estate | Maple Ridge Real Estate | Mission Homes

 
Posted by Raj Dhaliwal (MyAbbotsford.Com) on 08/27/2009 01:17 AM   Comments (3)   in the ActiveRain Channel   hst  
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This post has been included in British Columbia Real Estate News

3 Comments on Say NO To HST

AUG
27
2009
110,832 Points 2 Featured Posts Outside Blog

Doesn't sound like there is to much harmony in that.  Is HST replacing PST or GST?
2:06am • #1
805,327 Points 1 Featured Post Outside Blog Attended Rain Camp Called Shot Master

Charles - The BC PST system which operates in a similar manner to sales tax in the 45 states with sales tax is being replaced.  GST and HST are VAT type taxes.  The current GST rate is 5%.  The current BC PST rate is 7%. The new HST rate in BC will be 12% effective July 1, 2010 (5% GST portion plus 7% BC portion).  The HST is a single combined sales tax.  GST and HST share the identical tax base and rules.  However, the BC government will not charge the 7% BC portion of HST on a very very small number of goods and services.

GST and HST are both administered by and reported to the federal government on the same tax form and the federal government then distributes a portion to the provinces that charge HST.
6:00am • #2
AUG
28
2009

"However, the BC government will not charge the 7% BC portion of HST on a very very small number of goods and services." But they will charge HST on REALTOR's commission, appraisal fee, home inspection, and new home sales which are currently exempt from PST and only charged 5% GST.  And other s like restaurant meals, hair cut and other services that will come under the HST blanket.
12:34am • #3


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