We took a closer look at how this will affect the average citizen and found an interesting reference guide from the Ontario Government. HST- Ontario reference guide It lists what is and isn’t affected…
Surprisingly, a great many things will not be affected, including Resale homes and new homes under $400,000. Still, this new tax (and I do call it a new tax since I, personally, will be affected negatively) will affect us all one way or another…. Real estate commissions, lawyer fees, death (yes, funerals are now subject to retails sales tax), hockey arenas, gym memberships, karate classes, ballet classes, soccer, hockey (yes, our national sport), haircuts and many other services….
New home purchases over $400,000 are eligible for a $24,000 new housing rebate (must be your principal residence).
This new tax may not be popular and I question the timing of it’s introduction (coming out of a recession), but I don’t think this will have a huge impact on the majority of us. HST Day is coming….take a look at the reference sheet and see how it will affect you… What do you think?