The Government of Ontario is exploring the possibility of harmonizing the Provincial Sales Tax (PST) with the federal Goods and Services Tax (GST). This "harmonization" will result in an increase in "professional service" costs -- legal fees, real estate commission, home inspections, etc -- resulting in the current GST going from 5% to the proposed HST of 13%. This could add up to thousands of dollars in extra closing costs for the consumer.
As a result, the Ontario Real Estate Association (OREA) is asking consumers to voice their opinion and send a letter to their MPP. Please see letter below and click the link to send a pre-drafted letter to yoru MPP. Please note, your MPP's name and address will be automatically generated on the letter based on your information.
Call for Action
Harmonization of Sales Tax
On March 26th, 2009, the McGuinty government announced its intention to harmonize the goods and services tax with the provincial sales tax.
As a result of this change, provincial sales tax will now be levied on legal fees, appraisals, real estate commissions, home inspection fees and other services related to a real estate transaction.
OREA believes that this tax grab will severely hurt the resale housing market and reduce affordability for Ontarians trying to buy a home.
We encourage all OREA members and their clients to write their MPP to express their outrage at these new taxes and to tell them how badly they will hurt the real estate market in your area.
Send an e-mail to your MPP on this issue now by clicking here.
Should you receive a response from your MPP, please forward a copy to governmentrelations@orea.com or via fax: (416) 445-2644 to the attention of the Government Relations Department.
Thank you for your help.
Source: OREA
Sincerely,
Sara Kareer
Sales Representative
Century 21 Millennium Inc., Brokerage
(tel) 905-450-8300
(toll-free) 1-888-450-8301
(web) www.SaraKareer.com
(web) www.century21.ca/sara.kareer
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