It seems that the Ontario government has done a terrible job of educating the public about what goods and services the HST (harmonized sales tax) applies to. This is a big problem. A recent Ipsos Reid poll on behalf of the Ontario Real Estate Association, showed 56% of those polled believing that the HST applies to resale homes. Almost 60% of those over the age of 55 and 55% of those in the 18–54 age groups believe it applies to resale homes. University graduates fared little better with 51% ignorant of the new HST rules. These numbers are very disturbing to the OREA and should be as disturbing to the government. The average single-family house for sale in Ottawa sells right now for $330,000.00. That is high enough. If you believe you have to pay $40,000.00+ on top of that it might make you think twice. The fact that the Ottawa market has not stagnated in spite of this is a testament to the strength of the Ottawa housing market.
Did you know the HST does not apply to resale homes?