BC organized real estate opposes the HST
BC organized real estate opposes the HST
Presidents of the Fraser Valley and Greater Vancouver boards and BC real estate association have all spoken out against the newly proposed Harmonized Sales Tax (HST).
The BC government announced on July 23, 2009 that effective July 1, 2010, BC will adopt the HST, combining BC's seven per cent PST with the five per cent federal GST for a single sales tax rate of 12 per cent.
The proposed HST will significantly affect home buyers of both new and resale homes.
BCREA President, John Tillie, outlines in a July 29 editorial in the Vancouver Sun, that a person buying a $450,000 resale home will pay over $1,100 more due to the new tax applied to real estate transaction fees. On a $750,000 newly constructed home, a buyer would pay approximately $32,500 more in tax, even with the proposed $20,000 HST rebate on homes over $400,000.
Tillie says, “The HST has the potential to negatively affect housing affordability in British Columbia.” BCREA is asking the government to exempt real estate transaction costs from the provincial portion of the HST and increase the $400,000 rebate threshold on new housing.
Together with REBGV and BCREA, FVREB is exploring joint strategies to continue voicing our opposition of this new tax to the BC government.