The new 13 per cent harmonized sales tax (HST) will come into effect on July 1, 2010. Merging Ontario's 8 per cent sales tax with the 5 per cent federal GST will increase the cost of many items that were previously exempt from the provincial levy -- from gasoline to Internet bills, haircuts and real estate fees. Effective July 1 of this year, home buyers and sellers will pay 8 per cent more on legal fees, appraisals, real estate commissions, home inspection fees, and moving costs, adding about $1,500 in new taxes to the average residential real estate transaction in Ontario. If you are planning to buy and sell, you should consider completing the transactions on or before June 30 of this year. The new HST will apply to your commissions, legal fees, home inspection fees and other related costs. The HST will also add hundreds of dollars in additional tax on utility bills, such as gas, electricity and home heating fuel, on home renovation labour, the cost of lawn upkeep or landscaping and the cost of snow removal. Please contact me at 905-565-9200 for further information or visit the government website http://www.cra-arc.gc.ca/E/pub/gi/notice244/notice244-e.html. |