Wednesday, June 16, 2010

Applying the HST

The new Harmonized Sales Tax (HST) takes effect on July 1, 2010 and will affect certain agreements , such as the purchase of new homes that close after July 1st. HST will generally apply to the same tax base as the current GST does and therefore resale and resort homes will not be affected. Realtors commissions will be subject to the HST at the rate of 13 percent, instead of the GST rate of 5%. I have had some people ask if this new HST is on resale homes and Thankfully it is not.