Real Estate fights for Buyer RE HST
BCREA meets with Minister of Finance about proposed HST
On August 4, BCREA representatives John Tillie (President), Moss Moloney (Vice President) and Robert Laing (CEO) met with the Honourable Colin Hansen (Minister of Finance) to discuss the profession's recommendations on the new Harmonized Sales Tax (HST).
The recommendations were as follows:
- Keep costs associated with buying and selling new homes, existing homes, commercial properties and major renovation projdefrects neutral by way of an exemption of the tax proposed on the closing fees including those of home inspectors, appraisers, and REALTORS®.
- Increase the rebate threshold on new housing from the proposed $400,000 to $500,000, with the threshold indexed for inflation and adjusted annually.
- Amend the flat rebate of $20,000 to a fixed percentage rebate of 4% for new homes over the rebate threshold.
- Implement a three year phase out of the Property Transfer Tax (PTT) to restore fairness with respect to buyers.
As expected, the minister did not commit to any action and said that there would be no tax relief in the upcoming fall budget due to the current financial crisis. However, these recommendations would be reviewed with respect to the spring budget process. BCREA confirmed that the HST would figure prominently in the association's provincial pre-budget submission in the fall.