Recent surveys have found that Ontarians still don’t know what the HST covers and what is exempt. To be clear, there is no HST collected on the full purchase price of a resale home. In fact the HST is only levied on the various transaction fees associated with the purchase of a home that has been previously occupied (i.e. not a newly-built home).
HST CONFUSION
Posted in: Real estate concerns & issues
So “new home” there is no HST
“Used home” there is no HST but there are other fees which have HST ?
For the Buyer of a resale home, the HST does not apply to the purchase price of that resale home. The HST is applied to the applicable services and not the actual sale price of a resale home purchase. On the other side of the sale though, the Seller of a home would pay HST on those related services …. commission and related legal fees as opposed to paying the GST as previously under the old system.
” The provincial government has passed legislation to combine the eight percent Provincial Sales Tax with the five percent federal Goods and Services Tax, creating a 13 percent Harmonized Sales Tax (HST). HST will not apply on the purchase price of re-sale homes. HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions. HST will apply to the purchase price of newly constructed homes. However, the Province is proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.”
Any new surveys done on the subject? Have Ontarians become more well informed since?
I think that the process has settled in now.
Can you blame us? Ontarians should be outraged with this new HST nonsense.