Hey Bloggers – The topic today is Harmonized Sales Tax.
In summary, the Province of Ontario plans a major tax reform that will combine both the provincial and federal sales tax on products and services. The current combined tax of 5% GST and 8% Ontario sales tax won’t change the price on most items. But many items that used to be exempt from sales tax will no longer be so. Leading economists from across the country say the Harmonized Sales Tax is the single most important step Ontario can take to boost its economy. They also say Harmonizing the GST and PST will save employers $2 billion that can be used to lower prices to the consumer, increase investment and create jobs. It’s set to begin July 1st, 2010.
How does this relate to you and the real estate industry? The taxes will add a significant amount to the cost of home ownership. OREA (The Ontario Real Estate Association) says the “average” buyer will have to pay an additional $1,449 in new taxes on their next real estate transaction. In a ‘call to action’ the OREA members have sent over 13,000 e-mails to local MPP’s across Ontario asking them to reconsider. BCREA has devoted a web page to the HST. www.bcrea.bc.ca/hst/hstaction.htm
It will be interesting to see how this plays out. As always, any comments you may have can be left here on my Blog.
Want to learn more? Here is another good website: http://www.cbc.ca/money/story/2009/03/27/f-tax-faq.html
Hey Bloggers – just saw this article today.
McGuinty Liberals running scared on HST – November 12, 2009
It’s working. Your emails, letters and phone calls have the McGuinty Liberals scared. They showed it today with a desperate attempt to make their unfair tax grab easier to swallow. Under pressure from citizens like you, the Liberals announced coffee, donuts and newspapers will not be taxed under the harmonized sales tax scheme.
But they’re plowing ahead with their plans to add 8 per cent to the cost of Gasoline, Home heating, Hydro, Natural Gas, Internet bills, Newspapers and magazines, Adult footwear under $30 , Veterinary care, Hair cuts, Massage , Legal fees, Accounting fees, Mutual funds, Gym memberships, Real estate commissions, Commercial property rentals, Landscaping, Vitamins, Postal stamps , Live Theatres, Taxi fares, Conferences and seminars, Dry cleaning, Carpet cleaning, Funerals and more.
Legislation will be introduced on Monday to make this unfair tax grab the law in Ontario. The McGuinty Liberals think they can slip this by us. We need to keep the pressure on.
Visit our action page today at: http://www.unfairtaxgrab.com/takeaction
Write a letter to the editor of your local paper telling them what you think of Dalton McGuinty’s unfair tax grab. How will paying 8 per cent more for gasoline, home heating and hydro impact you and your family?
Your letters are making a difference. Let’s not stop now.
PS – Encourage people to sign the petition at http://www.unfairtaxgrab.com today.