B.C. to detail HST roll-back on new homes
B.C.’s new home builders, and thousands of anxious home buyers, should find out on Friday how and when the province intends to transition from the harmonized sales tax back to the provincial sales tax.
Finance Minister Kevin Falcon says it’s a significant announcement that should bring certainty to the housing industry.
“Housing purchases aren’t made every day, but when they are made, it’s a major purchase and we wanted to make sure that we had the transition rules done properly and done right,” said Falcon.
Under the HST, buyers who bought new homes over $525,000 received a $26,500 exemption, but paid the 12-per-cent HST. New homes under $525,000 were not charged HST.
Under the former and incoming, GST/PST system, new home buyers only paid the five per cent GST.
Voters approved a return to the PST and GST in a referendum last year, but the province estimates removal of the harmonized tax could take until March of 2013.
Industry analysts say that means many potential buyers are hanging on to their cash until B.C. reverts back to the old system of separate provincial and federal taxes.