What do you know about HST?

Hello Everyone, I have written in my blog about this subject before and I have come across a lot of people that still aren't sure about how it effects their home purchase.

This is going to affect all of us, so the more participation we get the better the outcome will be!!

Earlier this week, the Government of Ontario formally launched its latest on homeowners, purchasers and sellers with the introduction of legislation to harmonize the provincial sales tax and goods and services tax.

What is the HST?

The Harmonized Sales Tax will blend the PST with the GST. For consumers such as you and I, it will mean higher costs for items that were previously PST-exempt. For business, taxes will be lower. The government believes that lower business taxes will ultimately lead to lower prices for goods.

HOW IS THE TA X BURDEN LOWERED?

It involves changing the rules surrounding how the taxes are applied. Under the current system, businesses pay sales tax when they buy office supplies, machinery and other goods. These costs are eventually passed along to consumers. However, companies receive tax credits to cover the GST paid during the production of their goods and services. Harmonization extends these tax credits to the provincial part of the tax. The end result is lower production costs and more money to spend on machinery and equipment.

Homebuyers and sellers in Oakville and Ontario will pay 8 per cent more on legal fees, appraisals, real estate commissions, home inspection fees, and moving costs, adding about $1,500 in new taxes to the average residential real estate transaction in Ontario.

For homeowners the HST will also add hundreds of dollars in additional tax on utility bills (gas, electricity and home heating fuel), on home renovation labour, the cost of lawn upkeep or landscaping and the cost of snow removal.

Please help Oakville and Ontario REALTORS® fight this tax. In less than 30 seconds you can send an email to your MPP asking them to vote against sales tax harmonization legislation, by clicking here: http://bit.ly/stopthehst