Finance Minister, Kevin Falcon, has made public his transition arrangements regarding HST in BC today, so I thought you would like to see the details.
New Housing Transitional Rules
On Feburary 17th, 2012 the Government announced the transitional rules for returning to the PST. Below you will find information as well as the detailed tax information notice on these rules.
The housing transition rules help ensure when people buy a newly constructed home under the PST, whether built entirely under the HST, entirely under the PST, or partly under HST and partly under the PST, they will all pay a consistent and equitable amount of tax. The transition rules provide certainty for new-home construction and sales, particularly during the transition period.
For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the seven per cent provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of two per cent on the full house price. This ensures equitable treatment among purchasers and will help mitigate distortive market behaviour. Builders will receive temporary housing transition rebates to offset PST on materials to help prevent double-taxation on homebuyers.
- Average amount of embedded sales tax in newly built homes under PST: two per cent.
- Tax paid by purchasers on an $850,000-newly built home after HST rebate: two per cent.
- Tax rate on a newly built home during transition: two per cent.
For the rest of this article please click -: http://www.pstinbc.ca/buying_goods/buying_a_home/new_home_tax_calculatorKind Regards
Tel 250 864 1707