Harmonization or Tax Grab?

By
Real Estate Agent with Re/Max Ultimate Realty Inc. Brokerage

The Dalton McGinty government has introduced legislation to implement the harmonization of the Federal Goods and Services Tax (GST) with the Provincial Sales Tax (PST) in 2010. So instead of seeing a 5% GST and an 8% PST on whatever you buy, you will see a combined tax of 13% HST.

Sounds harmless...........right?

Except some goods and services are now exempt from the 8% Provincial Sales Tax.  At present, real estate commissions are not subject to the 8% PST. Neither are home inspections, home and condo appraisals or lawyers fees. All of these will become taxable at the Provincial level in 2010. For an idea of how these additional costs affect you as a buyer or a seller of real estate in the Mississauga and Toronto area see my previous posts on this.

http://activerain.com/blogsview/931203/first-time-home-buyers-beware-pickpockets-at-work

http://activerain.com/blogsview/925917/home-sellers-in-toronto-and-mississauga-beware-pickpockets-at-work

A new report released just this past week by BILD ( the Building Industry and Land Development Association) finds that homebuyers in the Greater Toronto Area will be hit the hardest due to the fact that homes tend to be more expensive in this area. The report also suggests that in excess of 21,000 jobs could also be lost if harmonization becomes reality.

As a buyer in Toronto you are already subject to an exorbitant Provincial Sales Tax known as Land Transfer Tax which effectively doubles after you are also gouged by Mayor David Millers' new Toronto Land Transfer Tax. On top of these you will now have additional costs related to the new HST in 2010.

That's Triple Taxation!

The government of Ontario has in the past, steadfastly refused calls to harmonize the GST and PST arguing it would it would add taxes to items that are currently exempt.

Enough is enough!

These guys from my hometown had something to say about the taxman. Take a moment and listen.

Call your local member of Ontario Provincial Parliament and let them know you will punish them at the voting booth if they harmonize the PST and GST. You can find your MPP by clicking on or copying and pasting the link below. If you don't know who your MPP is, there is also a link to find your constituency, and from there your local MPP.

http://www.ontariotenants.ca/government/mpp.phtml

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