Welcome to HomesListed 647 828-SOLD (7653)
February 5th, 2012 
LARRY PERSAUD


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Buy now! HST is on the way

 

The new harmonized sales tax being proposed in British Columbia and Ontario may end up being an overall wash for some consumers but anyone buying a new house is about to get dinged.

What the Ontario HST Means to Consumers

For the most part consumers will not notice a large change in prices. However, there are many items currently exempt from the provincial sales tax that will no longer be exempt. They include:

  • gasoline
  • heating fuels
  • electricity
  • tobacco
  • personal services, such as haircuts, membership fees for clubs and gyms, magazines, taxi fares, professional services for lawyers, architects and accountants, and real estate commissions.

The HST will not be charged on the following:

  • basic groceries
  • prescription drugs
  • some medical devices
  • municipal public transit
  • health and education services
  • legal aid
  • most financial services
  • child care
  • tutoring
  • music lessons
  • residential rents
  • condo fees

There will still be a few exemptions from the provincial portion of the sales tax:

  • children's clothing and footwear
  • diapers
  • children's car seats and car booster seats
  • feminine hygiene products
  • books (including audio books)
  • prepared food and beverages sold for $4.00 or less
  • print newspapers

The Ontario HST and Housing

No HST will be charged on

  • residential rents
  • condo fees
  • purchase of resale homes

The HST will apply on real estate commissions.

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