Build Case Against the HST
Greater Vancouver Home Builder's Association continues to build their case against the HST
In a recent Vancouver Sun column, Peter Simpson revealed independent analysis of how a harmonized sales tax would affect buyers of new homes in BC.
The research is by the Toronto-based Altus Group Economic Consulting. Here are a few of their key findings (the rest are outlined in Peter's column):
- Some 57 per cent of owners of newly built homes in BC own homes valued at more than $400,000 (the HST exemption limit). Therefore, the vast majority of potential new home buyers will be subject to sharp tax increases once the new tax is implemented.
- BC has a wide housing price distribution, with large variations in median price by area within the province. The sharp tax increases on homes priced above $400,000 will introduce significant regional disparities. Generally, denser areas like Vancouver will shoulder the majority of the new tax burden. This new tax will effectively be a tax on density - running contrary to provincial efforts to promote more compact patterns of development.
- In BC, about 60 per cent of owners of newly built homes valued at more than $400,000 have total household incomes below $100,000. These households can be considered middle class. The new HST burden will be disproportionately borne by the middle class.
The British Columbia Real Estate Association (BCREA) continues to 'collect' letters from REALTORS® and their clients in opposition to the HST. This campaign is endorsed by the FVREB. Thousands of letters have been submitted with more coming in.