HAVAN Chairman Ben Taddei, HAVAN President & CEO Peter Simpson and Director of Government Relations Amy Spencer attended an announcement on Friday, February 17 where BC Minister of Finance Kevin Falcon released HST transition rules and tax relief measures for the homebuilding industry and its customers.
Tax relief measures include:
Effective April 1, 2012, the HST rebate threshold on new homes increases to $850,000 from $525,000. The maximum rebate rises to $42,500 from $26,250.
Measures are also in place for the secondary/recreational home industry outside of the Greater Vancouver and Capital Regional Districts, where the HST rebate threshold rises to $850,000 from $0, also effective April 1, 2012.
PST implementation will be effective April 1, 2013. The transition rules from HST to PST 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.
Home renovation will fall under regular transition rules to take effect April 1, 2013.
The government’s intent is to ensure “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.
This has provided some clarity and certainty to consumers and should help to neutralize the impact of the HST a year before it reverts to the PST system. Overall this should help to stimulate the new homes market throughout the province.
For more information about the new rebates, go to www.pstinbc.ca and click on “New Housing Rules”. The government’s full policy is available at: www.pstinbc.ca/media/2012_housing_rules_FEB.pdf.
More information about the transition rules from HST to PST is available here: http://www.fin.gc.ca/n12/data/12-017_1-eng.asp.
