How will the HST impact the Real Estate sector?
The HST would generally apply to a supply of a service to the extent that the service is performed on or after July 1, 2010. The HST would generally not apply, however, to a supply of a service if all or substantially all (90% or more) of the service is performed before July 2010.
Proposed to Take Effect on July 1, 2010 | |
Tax: 12 per cent HST | |
New Home Price Level |
Rebate |
Up to $350,000 |
Partial Rebate on Federal Portion of HST (GST) |
71.43% Rebate on Provincial Portion of HST | |
Government expects total impact to be equivalent to existing tax system before July 1, 2010 | |
$350,000 t0 $450,000 |
Rebate on Federal Portion of HST (GST) clawed back (straight-line method) |
71.43% Rebate on Provincial Portion of HST | |
Government expects total impact to be equivalent to existing tax system before July 1, 2010 | |
$450,000 to $525,000 |
71.43% Rebate on Provincial Portion of HST |
Government expects total impact to be equivalent to existing tax system before July 1, 2010 | |
Over $525,000 |
$26,250 Fixed Rebate on Provincial Portion of HST |
Existing System Before July 1, 2010 | |
Tax: 5 per cent GST | |
New Home Price Level |
Rebate |
Up to $350,000 |
Partial Rebate on Federal Portion of HST (GST) |
$350,000 to $450,000 |
Partial Rebate on Federal Portion of HST (GST) gradually eliminated |
Over $450,000 |
No Rebate |
This additional layer of taxation enhances the already heavy burden carried by BC homebuyers. Therefore, BCREA is focused on achieving fairness for consumers.
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