Ontario's New HST Will Cost Greater Toronto Area Homebuyer's and Sellers Millions.
Ontario consumers are on the brink of another provincial tax grab, the HST, and it seems that no matter how much lobbiers, business people and the public protest, it will go through anyways.
Effective July 1st, 2010, consumers can expect to pay an additional 8 % tax on all services which previously were only charged the 5% GST.
This measure of Premier Dalton McGuinty's has the potential to do away with 21,200 construction jobs in Ontario and many of the jobs that support the construction industry.
A recent report commissioned by the Building Industry and Land Development Association (BILD) states that of the additonal $800 million the new HST tax will cost Ontario buyers of new homes, Toronto area homebuyers will pay approximately $575 million of it due to the higher overall new home prices in the Toronto area.
New homes which cost less than $400,000 will be exempt from the new HST and those homes costing less than $500,000 will have partial rebates.
In the Toronto area, which covers many nearby cities such as Mississauga and Oakville, 36% of new homes cost over $400,000.
After July 1st, a home buyer will be paying an additional $40,000 on a $500,000 new home.
For this reason many buyers are rushing to purchase before the July 1st deadline.
In addition to the negative effect the HST will have on homebuyers, home sellers will be paying thousands more when they sell their homes since all of the services that are involved when a home is sold such as real estate commission, legal costs, etc will have an additional 8% tax over and above the previous 5% comprised of the GST only.
Consumers will be paying the additional 8% tax on gas, utilities, and many more items which previously were only taxed the 5% GST.
Just when the economy is beginning to make a comeback after a rough couple of years, the Ontario government hits us with the HST.
I suppose it's not enough that Ontarions are already one of the highest taxed peoples on the planet; Dalton McGuinty feels the need to squeeze just a little bit more from an overtaxed and hurting populace.
©2009JoSmith
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Jo-Anne Smith, the author of this article, is a REALTOR® with Brekland Realty Group, Oakville, Ontario and welcomes your real estate inquiries. To contact her, visit www.oakville-burlingtonhomes.com |
