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News Release: For Immediate Release 2012FIN0006-000165 Feb. 17, 2012 Ministry of Finance
News Release: For Immediate Release 2012FIN0006-000165 Feb. 17, 2012 Ministry of Finance
News Release: For Immediate Release 2012FIN0006-000165 Feb. 17, 2012 Ministry of Finance
The transition rules outlined today provide certainty for new-home construction and sales, particularly during the transition period. For goods and services that will be subject to PST, PST will generally apply where tax becomes payable on or after April 1, 2013. Detailed general transitional rules for goods and services will be available with the full PST legislation introduced in the legislature this spring. The provincial changes are subject to the approval of the legislature.
Quotes: Finance Minister Kevin Falcon These measures ensure that there is fairness and equity throughout the transition period, and provide a roadmap for the housing industry to make the transition back to PST as smooth as possible. The relief measures announced today are a boost to home buyers purchasing either a new primary residence or a secondary home. At the same time, they help an important job-creator in all parts of the province.
Quick Facts: Raising the B.C. HST rebate threshold to $850,000 is expected to save purchasers about $60 million in 2012-13. The maximum value rises to $42,500 from $26,250, a 60 per cent increase. More than 90 per cent of newly built homes sold in B.C. are below the new higher rebate threshold. Average amount of embedded sales tax in newly built homes under PST: two per cent. Tax paid by purchasers on an $850,000-newly built home after HST rebate: two per cent. Tax rate on a newly built home during transition: two per cent. The temporary housing transition measures will be in place for two years, until March 31, 2015. The tax only applies to homes where construction begins before the transition date and ownership and possession occur after. The temporary housing transition tax and the temporary housing transition rebates will be administered by the Canada Revenue Agency on behalf of B.C. The Province is administering the grant for new secondary vacation and recreational homes.
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