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LEGAL ALERTS
The New HST and Real Estate Transactions

The Harmonized Sales Tax (HST) comes into force in Ontario on July 1, 2010. The HST combines the 8% provincial sales tax (PST) with the 5% federal goods and services tax (GST) to create a single, harmonized sales tax of 13%.

Properties under $400,000 will be exempt.  There will also be no HST payable on the sale of a residential resale home, just as there is no GST on such sales now.  However, new home purchases that are presently subject to GST will be taxable at the 13% HST level.  The new tax will also apply to many real-estate services to which only one or the other form of tax had applied previously. These include :

These taxes are all in addition to the Land Transfer Taxes which exist for both the province of Ontario and (where applicable) the City of Toronto.

Payday loan changes in effect

Under the Payday Loans Act, 2008 the provincial government had also shored up certain protections for users of payday loan services. Although the Act itself came into force earlier in the year, and included a requirement for all lenders to secure a license as of April 1, Ontario payday lenders are now restricted from charging more than $21 in charges per $100 loan, effective December 15, 2009.