Whistler Blog

Squamish HST? PST? What is up?

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Squamish HST? PST? How the tax transition will affect new home buyers and builders. Spring got you thinking about new beginnings? Thinking about building but wondering about the timing?  With the HST/PST transitional rules on new homes, building looks like a fine idea.  The announcement of the new rules that will govern the HST/PST during the transition period  will help define what the cost of building or buying that new home will mean when it comes to paying taxes on the final purchase.  Did you know that the BC New Housing Rebate threshold will increase by $325,000? This means that more than 90% of newly built homes will be eligible for a provincial HST rebate as of April 1st of this year.  The maximum rebate has also increased, from $26,250 to $42,500, double the rebate possible before.  For newly built homes where construction started before April of next year, but will not be ready for purchase until after April 1, 2013, the buyer will not have to pay the 7% provincial portion of the HST, but will instead pay a 2% transitional provincial tax on the full price of the house.  What does all this really mean to the buyer of a new home? It means the purchasers of a new home will all pay a “consistent and equitable amount of tax” whether the home is built entirely under the HST system of taxation, entirely under the PST system, or partly under both taxation systems. For more information, visit the BC Ministry of Finance at their website To read the Ministry of Finance announcement go here Confused, don’t worry you are not alone. One of the Realtors at Black Tusk can either explain it to you, or send you to an accountant who can walk you through the changes and don’t worry you won’t be alone.