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?
Hi Christopher,
ReplyDeleteMy name is Rachael from the Ontario Ministry of Revenue.
Our website is a great resource of information on all HST matters. You can visit our website here: www.ontario.ca/taxchange.
We also have our "What's Taxable Under the HST and What's Not document: http://www.rev.gov.on.ca/en/taxchange/pdf/taxable.pdf or our mobile app:http://www.rev.gov.on.ca/hstmobile/
If you would like to follow us on Twitter, our handle is @OntarioREV.
And of course, you can email me at Rachael.MOR@ontario.ca for more information on the HST.