Great News from the Real Estate Board on HST

Great News from the Real Estate Board on HST

December 10, 2009 By Pres Ⓡ Staging Resource Centre

This was recently sent to me by Leanne Woodward a Realtor with Prudential Sussex Realty in North Vancouver BC:

Great News for buyers, sellers and the Real Estate Board. Government listens to REB on HST

The BC Government has announced that it will exclude new homes costing up to $525,000 from its proposed 12% Harmonized Sales Tax (HST) scheduled to take effect July 1, 2010, this increase will move the threshold to above the average new home price in the province.

The government has also increased the rebate of the provincial portion of the HST paid on a new home to a maximum of $26,250. They had originally proposed a home price threshold of $400,000 and a maximum rebate of $20,000, this is a 30% increase on that first proposal. This was all in answer to the Real Estate Board lobbying to raise the threshold in October 2009.

The government has also released its proposed Residential Housing New Housing Rebates and Transitional Rules for British Columbia HST, This includes:

Transitional rules: the HST would not apply to sales of new homes where ownership or possession is transferred before July 1, 2010.

Grandparenting: sales of new homes under written agreements of purchase and sale, including presales, entered into on or before midnight November 18, 2009, would generally not be subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010. Any home sold on or after November 19, 2009 is subject to HST transitional rules.

For a copy of the new Transitional Rules, visit:

http://www.sbr.gov.bc.ca/business/Consumer_Taxes/Harmonized_Sales_Tax/HST_Transitional_Rules.html