PST and GST set to be harmonized !

[WilWong]

I really hope this doesn't affect me. My closing is in July.

That extra tax is an extra $21,520

[Mike83]

Originally Posted by WilWong

I really hope this doesn't affect me. My closing is in July.

That extra tax is an extra $21,520

i was wondering about this too - i dont think it affects people who have already bought, but it still sucks. maybe someone can clarify.

[kaydy]

The thought about the harmonization of PST/ GST is a huge blow for all of us new home buyers. Everything will go up significantly, blowing our budget to shreds. Only in Canada would they introduce something like this when we are knee deep in recession.

To quote an article on Globe and Mail;

Tax increases on new home sales would range from $12,000 to more than $46,000. “

Heating costs, cable, internet, etc will all go up.

Bad news. Shame to the our current elected govt officials for even considering this during such tough times !!

[saw_mui]

I'm just hoping it doesn't get passed

and if it does...we better not have to pay the difference in the house prices

[DRC]

Originally Posted by saw_mui

I'm just hoping it doesn't get passed

and if it does...we better not have to pay the difference in the house prices

I thought about this as well. If passed, how would this work for new home buyers that have already signed a Purchased Agreement that states that GST is inclusive of the price?

[kaydy]

I am not 100% well versed in this but I am sure that our closing is the date that influence the taxes. I also remember clearly that any additional taxes imposed would be affecting us as well. Can anyone here comment further?

What about our monthly costs? Everything will sky rocket.

Here we are doing our bit buying a home despite such tough times and our elected officials choose this terrible time to pull this off.

[Fraggle7th]

worst. idea. ever.

[saw_mui]

I know for fact when the GST decrease in i think 2008. New purchasers for houses received a credit (those who were lucky, and the builder didn't find ways to get out of it).

If it increased..you might see an addendum on the contract price for the house price (i.e. similar to what would happen in the decor center if you choose to put the addition to the purchase price).

the news did say it would take some time for this to happen....if it does..it better happen after ppl close who just bought!

[Mark & Lynda]

This may affect anyone who has purchased a new home that closes AFTER the new HST is implemented. Just like when the GST was reduced we received a credit because our closing date fell after the new tax came into effect.

It's another tax grab at a bad time. If they lowered the PST rate 2 points I may be able to swallow it but not happy about paying more for baby products and books. We can all thank ourselves for re-electing this gov't.

[saw_mui]

Originally Posted by Mark & Lynda

This may affect anyone who has purchased a new home that closes AFTER the new HST is implemented. Just like when the GST was reduced we received a credit because our closing date fell after the new tax came into effect.

It's another tax grab at a bad time. If they lowered the PST rate 2 points I may be able to swallow it but not happy about paying more for baby products and books. We can all thank ourselves for re-electing this gov't.

I think it all depends on the CLOSING date, the date in which the contract was fufilled and that you have paid the builder.

Its the same as energy costs...you weren't charged the old GST when it reduced..rather it was when the bill was issued.