HST: Love It Or Not, It Is here to Stay

The Harmonized Sales Tax, a.k.a. the new BC HST, is 12% tax applicable to most goods and services, including new homes, real estate, and property. It is the combination of the GST (5%) and PST (7%). Currently new homes are subject to GST in which first time home buyers can receive GST rebates. This GST will be replaced with the higher 12% HST, a 7% difference in taxes on the total purchase price of a new home or property. The government is promising to rebate the province’s share of the HST on new homes up to $400,000, with a flat $20,000. rebate on homes over that price. BC also charges a property transfer tax of 1% on the first $200,000. and 2% on the balance of the purchase price.

– from bcrea.bc.ca

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