The HST is going –
what’s next? by Andrew Peck

In August, 2011, as a result of a referendum on the Harmonized Sales tax (HST), the Province announced that it would get rid of the HST and reinstate the combined PST and GST tax system.

The target date for the switchover is March 31, 2013.

The HST was brought in on July 23, 2009 by the BC government. It was not good news for home buyers.

Already burdened with the contentious Property Transfer Tax, home buyers made it clear that the HST would be a key reason preventing them from buying new homes.

Since the tax would also be on services such as appraisals, inspections and REALTOR® fees, buyers also us that the HST made them rethink their purchase of resale homes.

During the transition period to March 31, 2011, the provincial portion of the HST will remain in place at seven per cent. The PST will be reinstated at seven per cent with all permanent PST exemptions.

If you have questions

Royal Pacific Realty Group REALTORS® have been receiving questions from our client such as:

Q: How long will the HST BC New Housing Rebate of $26,250 continue?

Q: What about presale agreements? If you buy a presale property and take ownership and possession, on or after March 31, 2013, will you pay the HST?

Q: If I construct or substantially renovate a residential property to rent to tenants, will I pay the HST and be eligible for a rebate of up to $26,250 all the way to March 31, 2013?

A: Our answers to these questions is the same: we don’t know.

As soon as the government releases information, we will keep our REALTORS® and our client’s informed.

What do you think of the HST? Let me know at apeck@royalpacific.com

Thank you,
Andrew Peck, Vice-president and General Manager