HST referendum vote details confirmed

Posted on April 12, 2011 by Sanjin Cvetkovic

The B.C. government announced on April 8, 2011 the process by which British Columbians will cast their ballot in the HST referendum vote this summer.

Key Dates:

Monday, June 13 – Elections BC starts mailing out referendum ballots for the HST to all registered voters.
Friday, June 24 – Majority of British Columbians have received the ballot.
Friday, July 8 – Last day for unregistered voters to request a ballot from Elections BC.
Friday, July 22, 4:30 p.m. (local time) – Completed ballots must be received by mail by Elections BC or in person by a Service BC centre.

Elections BC, a non-partisan office of the legislature, will conduct the referendum.

British Columbians who are not registered voters for a provincial election, or who have moved since the last election and have not updated their voter record, will need to request a ballot from Elections BC.

It will take several weeks for Elections BC to count the ballots. Results of the vote are expected in August.

The referendum question will be:

“Are you in favour of extinguishing the HST (Harmonized Sales Tax) and reinstating the PST (Provincial Sales Tax) in conjunction with the GST (Goods and Services Tax)? Yes/No.”

Quote:

Attorney General Barry Penner –

“Most British Columbians will have their ballot by June 24 and can begin weighing this very important decision. Voters will need to remember that, to be counted, they must make sure their ballots are mailed in time to be received by Elections BC before the close of voting at 4:30 p.m. local time on Friday, July 22 or deliver their completed ballot to a Service BC centre by the same deadline.”

Learn More:

For more information on the HST, visit: www.hstinbc.ca

For more information on Elections BC, visit: www.elections.bc.ca

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HST update

Posted on November 19, 2009 by Sanjin Cvetkovic

Posted in hst

HST update

Government listens to Real Estate Board on HST

The BC Government has announced that it will exclude new homes costing up to $525,000 from its proposed 12 per cent Harmonized Sales Tax (HST) scheduled to take effect July 1, 2010.

The government has also increased the rebate of the provincial portion of the HST paid on a new home to a maximum of $26,250.

This represents a 30 per cent increase over the original government proposed home price threshold of $400,000 and maximum rebate of $20,000.

This is good news for the Real Estate Board and proof that its lobbying efforts produce results.

In October, 2009, the Board asked the government to raise the threshold for the HST on new homes as well as the new housing rebate.

Clearly the government listened to the Board and the real estate sector.

“We heard the concerns from consumers and industry about how the HST might affect home buyers, and this increase will move the threshold to above the average new home price in the province,” said the Hon. Colin Hansen, Minister of Finance.

A similar rebate will also support the construction or substantial renovation of affordable rental housing.

The government has released its proposed Residential Housing New Housing Rebates and Transitional Rules for British Columbia HST, which provides details on new housing rebates including transitional rules for real property. This includes:

Transitional rules: the HST would not apply to sales of new homes where ownership or possession is transferred before July 1, 2010;

Grandparenting: sales of new homes under written agreements of purchase and sale including presales entered into on or before midnight November 18, 2009, would generally not be subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010. Any home sold on or after November 19, 2009 is subject to HST transitional rules.

For a copy of the new Transitional Rules, visit: http://www.sbr.gov.bc.ca/business/Consumer_Taxes/Harmonized_Sales_Tax/HST_Transitional_Rules.html

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HST - How it affects you

Posted on October 1, 2009 by BCREA

Posted in gst, hst, provincial, real estate, taxes

What the HST means for you

The provincial government's decision to harmonize the provincial and federal sales taxes into the new 12% HST will remove $2 billion in costs to BC businesses and provide point-of-sale rebates on many important goods and services.

However, we are concerned that the proposed HST will increase the cost of buying and selling all property and have a significant impact on the purchase of newly-built homes.

Increasing Cost of Professional Services like REALTOR® Commissions

Under the previous system, only five per cent GST was charged on professional services associated with real estate transactions such as appraisals, inspections and REALTOR® commissions.

Under the proposed HST, the taxes charged on those services will jump an additional seven per cent, adding to nearly all closing costs.

Increasing Cost of New Homes

For new homes, under the previous system, only five per cent GST was charged on new home sales. Under the proposed HST, a very complicated new arrangement will drive up the cost of new homes.

Partial Rebate Not Enough

To offset the increase in costs, the BC Government plans to offer a partial rebate of the HST for new housing, intending that new homes up to $400,000 should bear no more tax than under the current PST system. Homes above $400,000 will receive a flat rebate of $20,000. New home sales over $400,000 will be dramatically impacted, as buyers will have to pay an additional seven per cent tax on amounts over $400,000.

Consider a new home in Greater Vancouver: with a current Housing Price Index benchmark price for all new residential properties combined (single family detached, townhouse, and condo) of $528,821, the current taxes (GST and the Property Transfer Tax) total over $ 35,000. On July 1, 2010, the same home buyer will pay almost $5,000 more in taxes due to the HST.

British Columbians Already Taxed Unfairly on Housing

In addition, the Property Transfer Tax already requires BC homebuyers to shoulder an unfair tax burden. British Columbians pay 222 per cent more in land transfer taxes per transaction than the average Canadian.

The BC Government levies a Property Transfer Tax rate that is 129 per cent higher than the average for Canadian provinces. Higher property prices are not solely to blame for this scenario; prices in British Columbia are 45 per cent higher, so the inequitable structure of the BC Government's Property Transfer Tax adds an additional burden of up to 177 per cent.

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