Implementing HST - Effective July 1st 2010
The provinicial government has passed legislation to create a Harmonized Sales Tax (HST) of 13 percent. This will come into effect on July 1st 2010. Here is a brief list of information regarding HST and how it will affect your real estate purchases:
- HST will not apply on the purchase price of re-sale homes
- HST will apply to moving costs, any legal fees associated with the sale, home inspections costs and REALTOR commissions
- HST will aslo apply to the purchase price of newly contructed homes. Furthermore, the province is in discussion to place a 75 percent rebate of the provincial portion of the single sales tax on the first $400K. New homes under $400K would not have an additional tax amount compared to the current system.
For further information please go to: http://communications2.torontomls.net/newstand/news/2009/mn0910/HST_transition_rules.htm