The BC Budget announced contains pleasant surprises for first-time buyers who purchase newly built homes, and for seniors who make renovations to help them live independently.
On February 17, 2012, BC Minister of Finance Kevin Falcon announced the provincial government’s intention to enhance the existing BC Harmonized Sales Tax (HST) New Housing Rebate by increasing the threshold to $850,000 from $525,000.
On February 21st, the BC government announced the 2012/13 Provincial Budget.
Every sector of the economy needs certainty to function efficiently and real estate is no exception. The recent HST debacle has affected real estate more than any other sector.
Effective February 21, 2012, to March 31, 2013, the bonus is a one-time refundable personal income tax credit worth up to $10,000.
The province will transition back to the Provincial Sales Tax (PST), which will replace the Harmonized Sales Tax (HST), on April 1, 2013. Until then, the province has announced transitional rules for new homes which take effect April 1, 2012.
The provincial portion of the Harmonized Sales Tax is about to drop to two per cent on all new homes sold for $850,000 or less, a move widely praised by those in the beleaguered home building industry.
New housing transition measures give certainty to an important economic sector and help to keep taxes equitable throughout the transition as the province returns to the PST
Consumers looking to buy a new home in the middle of the transition between the harmonized sales tax and the provincial sales tax will have answers on Friday about what their tax bill will look like.
With the recent defeat of the HST (to be implemented in March 2013), I have received some questions about how this will affect the real estate market.