VANCOUVER – The B.C. government has raised the HST exemption from $525,000 to $850,000 for new homes but whether that will have any impact on the declining home sales market remains to be seen.
The government announced Friday it will officially return to the seven-per-cent provincial sales tax by April 1, 2013, ending a bleak period in the history of the BC Liberal government.
But starting April 1, 2012, the government will raise the HST rebate threshold for new home buyers to $850,000.
That means more than 90 per cent of newly built homes will be eligible for the rebate of up to $42,500.
B.C. Finance Minister Kevin Falcon said the changes ensure that there is fairness through the transition period and provides a road map for the housing industry to make the transition back to the PST as smooth as possible.
After the HST-end date, those who buy a home built before April 1, 2013 will have to pay a two per cent transition tax on the full house price.
