November 23, 2009

British Columbia finance minister Colin Hansen

VICTORIA – The government of British Columbia has announced it will increase the threshold for the Harmonized Sales Tax New Housing Rebate. The threshold had previously been set at $400,000, but may be increased to $525,000. The move would ensure that a greater share of purchasers of new homes pay no more tax due to harmonization.
“We heard the concerns from consumers and industry about how the HST might affect home buyers, and this increase will move the threshold to above the average new home price in the province. At $26,250, this provides the highest maximum provincial rebate in Canada,” said the province’s finance minister, Colin Hansen. “A similar rebate will also support the construction or substantial renovation of affordable rental housing.”
New home purchasers who qualify for the rebate would receive a reduction of 71.43 per cent of the provincial portion of the HST, up to a maximum of $26,250. New homes sold above the $525,000 threshold will receive a flat rebate of $26,250.
"For our region, this new threshold covers most new housing built here," said Darryl
Caunt, president of the CHBA Central Interior. "We are pleased that the government has heard us. We hope more positive details are in the wings regarding renovations and indexing the threshold for the good of consumers in our province."
The provincial portion of the HST would not apply to sales of new homes where ownership is transferred before July 1, 2010. Sales of new homes under written agreements of purchase and sale entered into on or before November 18, 2009, would also not be subject to the provincial portion of the HST.