Government
announces new HST/PST housing transitional rules.
The government today announced the HST/PST
transitional rules on new homes. As the province transitions back to the
PST, which will replace the HST effective April 1, 2013, measures to ease
the HST burden on new home buyers include: The BC New Housing Rebate
threshold will increase to $850,000 from $525,000, so that more than 90% of
newly built homes will now be eligible for a provincial HST rebate
effective April 1, 2012. The maximum rebate will increase to $42,500 from
$26,250 effective April 1, 2012. Buyers of new secondary vacation or
recreational homes outside the Greater Vancouver and Capital Regional
Districts priced up to $850,000 will now be eligible to claim a provincial
grant of up to $42,500 effective April 1, 2012. For newly built homes where
construction begins before April 1, 2013, but ownership and possession
occur after, purchasers will not pay the 7% provincial portion of the HST.
Instead, purchasers will pay a temporary, transitional provincial tax of 2%
on the full house price. HST/PST transition rules will help ensure that
whenever purchasers buy a new home they will all pay a consistent and
equitable amount of tax, whether the home is built: entirely under the HST;
entirely under the PST; or partly under HST and partly under the PST. The
temporary housing transition measures will be in place until March 31,
2015. The tax only applies to homes where construction begins before the
transition date and ownership and possession occur after. REBGV
successfully advocated for the following: An increase in the threshold
value of homes to be covered by the rebate; An increase in the rebate
amount; An announcement of the transition rules for new homes as early as
possible. The BC Real Estate Association plans to provide Boards with a
list of FAQs and draft contract language that REALTORS® can use in their
listing agreements and contracts of purchase of sales contracts.
For more information,
visit the BC Ministry of Finance at: www.pstinbc.ca To read the Ministry of
Finance announcement:
www.newsroom.gov.bc.ca/2012/02/transition-measures-support-new-home-buyers-builders.html
|