What affect does the harmonized sales tax (HST) have on real estate transactions? There is a lot of confusion, but here is the simple explanation.
There is no HST payable on the sale of resale residential property in the Shelburne or Orangeville area. New residential construction does attract HST in various amounts under certain conditions. Buying a working farm, commercial property and most vacant land is now taxed at a full 13% on the purchase price.
There are definitely extra costs to home owners in Dufferin County who sell their houses and, to a lesser extent, extra fees for home buyers.
Real estate commissions now attract tax at a rate of 13%, as do lawyers' fees and the bill from the home inspector. Tax charged on home insurance premiums and the CMHC insurance fee, which is still taxed at 8% in Ontario.
One of the biggest changes since the introduction of the HST most will notice is the extra cost for utilities, which have already seen a steady rise. Your hydro bill, gas bill, and internet service invoices now charge 13% tax on top of the bill, and the plumber and electrician are also required to charge 13% tax on their services. Phone and cable television services also attract a 13% tax.
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