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New HST Could Hurt New Home Buyers
February 25th, 2010 by admin
The new Harmonized Sales Tax, which combines the GST and the provincial sales tax, will coming into effect on July 1, 2010. Goods and services that were previously tax free will now be taxable and a sector that will be particularly hard hit will be the real estate industry. Starting in July, Ontarians will be forced to pay eight percent more on such items as legal fees, real estate commissions, home inspections, home appraisals, etc. On average, this new tax will mean that a home buyers will have to spend $1,500 more in taxes for the purchase of a home. The Timmins real estate board is proposing that the government reduce the Ontario Land Transfer Tax by half a percent to offset the hike in sales tax.