I got a call from a client today asking how the proposed HST in B.C. would affect her as she is planning to buy a pre-sale condominium that would be completing after July 1, 2010. Unfortunately, based on the current information she would have to pay the provincial portion of it even though she would enter an agreement to purchase today. Here is a portion from the B.C. Government website:
“Rebate Threshold and Transitional Rules For New Housing
The Province is proposing to increase the threshold for the B.C. HST new-housing rebate from $400,000 to $525,000 to ensure that, on average, purchasers of new homes up to $525,000 pay no more tax due to harmonization than is currently embedded as PST.
The Province is also proposing transitional rules for new housing. The provincial portion of the HST would not apply to sales of new homes where ownership or possession is transferred before July 1, 2010. In addition, sales of new homes under written agreements of purchase and sale entered into on or before 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.”
Keep in mind that the legislation has not passed yet and tweaks may be made in the future. We can always hope right?
You can read the entire article here: