Just a few years ago, we transitioned to the HST from the good ol' GST. And just as we were really getting used to the HST, we're now going to transition back to the GST. The government has now published transition rules.
These rules typically apply only to new construction or to major renovations.
If you have a specific situation you'd like to discuss, please call me and I can discuss it with you.
HIGHLIGHTS OF THE RETURN TO PST ANNOUNCED BY
THE BC GOVERNMENT
February 17, 2012.
TODAY
- For Completion Dates between NOW and April 1, 2012, the current
tax (HST) still applies with the same rebate programs.
TRANSITIONAL RULES
- For Completion Dates between April 1, 2012 and April 1, 2013,
transitional rules will apply. GST and PST will be charged. A PST
new housing rebate will be available of 71.43% of the PST portion to
a maximum of $42,500.
- Or, in other words, if you buy a home of $850,000 or less, you will
pay the usual GST, plus PST of 2% after the rebate is taken into
account.
- For homes constructed partly before April 1, 2013 and partly after
April 1, 2013, there will be a mechanism for calculating which taxes
and which rebates will apply.
- The transitional rules will apply to new rental housing and to new
second and recreational homes outside of the Capital and Greater
Vancouver Regional Districts.
NO PST AFTER APRIL 1, 2013
- For homes constructed entirely after April 1, 2013, PST will not be
charged. (Note: builders will not be able to claim input tax credits for
PST paid on building materials, so home prices may be adversely
affected). GST will still be payable and the existing federal GST
rebates programs remain in place.
Follow these links for details of the new tax programs from the Provincial Government:
http://www.pstinbc.ca/media/2012_housing_rules_FEB.pdf
http://www.pstinbc.ca/buying_goods/buying_a_home/new_home_tax_calculator
Information provided by Ward Ellis-Winters of Royal Bank of Canada.
Ward Ellis-Winters
Mortgage Specialist, Residential Mortgages
Sunshine Coast,
T 604-740-1081 F 604-886-3974
mortgage.rbc.com/ward.ellis-winters
