HST around the house

With HST tax coming into effect July 1^st, many new home owners are wondering what exactly will be affected, and what won’t. Many household items that were previously subject to 8% provincial and 5% federal tax will now simply switch over to the 13% HST, and consumers will incur no additional costs. However, some items that were only subject to the 5% federal tax will now be subject to the 13% HST. In total, about 83% of products and services purchased by consumers will see no new tax.

What WON’T be affected:

• New homes under $400,000 (The new housing rebate will be 75 per cent of the Ontario component of the HST, up to a maximum of $24,000. The rebate will ensure that buyers of homes priced up to $400,000 will, on average, pay no more tax than under the PST system. However, applicable PST on building supplies is embedded in the price of the home.)
• Cable TV and home phone services
• Municipal water
• Home maintenance equipment
• Repairs to free-standing appliances such as stoves, refrigerators, washing machines
• Home insurance
• Cleaning products
• Household and patio furniture
• Refrigerators and Freezers
• Books, newspapers and computer software
• Landscaping materials including sod, soil and plants
• Barbeques, lawnmowers, snow blowers
• Toys and outdoor play equipment
• Linens including towels and bedding
• Tools, such as shovels and rakes
• Building materials such as lumber and concrete

• New homes over $400,000 (New homes purchased as primary residences, valued at $400,000 or more will be eligible for the maximum new housing rebate of $24,000.)
• Cleaning services (Changes from 5% to 13%)
• Electricity and Heating (Changes from 5% to 13%)
• Internet Access (Changes from 5% to 13%)
• Repairs by trades people (electrician/plumber/carpenter) to maintain or repair furnace, leaky faucets, toilets, electrical wiring, etc. (Changes from 5% to 13%)
• Landscaping, lawn care and private snow removal (Changes from 5% to 13%)
• Home renovations (Changes from 5% to 13%)