On July 1, 2010, the 13% Harmonized Sales Tax (HST) will come into effect in Ontario. The HST is a combination of the 5% Federal Goods and Service Tax (GST) and the 8% Ontario Retail Sales TAx (PST). There will no longer be a separate Ontario Retail Sales Tax.
For real estate agreements entered into on and after October 14, 2009, HST will apply if both ownership and possession is transferred to the purchaser on or after July 1, 2010.
Under the new HST rules, individuals will be eligible for a New Housing Rebate which is in addition to the existing GST New Housing Rebate. The Ontario HST New Housing Rebate is 6% of the value of the home, up to maximum of $24,000. There is no rebate for the value of a home which exceeds $400,000. The GST New Housing Rebate remains at 5% and is phased out for house values exceeding $350,000.
At Hyde Park Homes, like most builders in the industry, our properties are sold with the HST included in the purchase (as apposed to being added in addition). Therefore, there will be no HST added to the purchase price at the time of closing. We are responsible for remitting the HST and the combined rebate will be assigned to us and deducted from the amount of tax due.