Powell River Living on the Sunshine Coast, BC

This just in from the British Columbia Real Estate Association:

The Provincial Government of British Columbia today announced the HST/PST transition rules for housing during the return to the PST on April 1, 2013. You can find the government’s announcement here: http://www.newsroom.gov.bc.ca/2012/02/transition-measures-support-new-home-buyers-builders.html

Some of the key elements include:

-          The B.C. new housing rebate threshold will be increased to $850,000, effective April 1, 2012 with a maximum rebate of $42,500.

-          A provincial grant of up to $ 42,500 will be available for purchasers of new secondary vacation or recreational homes outside the Greater Vancouver and Capital regional districts priced up to $850,000, effective April 1, 2012.

-          For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the seven per cent provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of two per cent on the full house price.

-          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.

What does all of this mean? We are going to be starting the slow and painful process of changing from Harmonized Sales Tax back to the Provincial Sales Tax in British Columbia real estate transactions. It will be a learning experience in patience and math for everyone involved.

Draft contract language as well as frequently asked questions will be available on the BCREA website this week. This will be a great resource for REALTORS® and clients.

Happy Springtime Everyone!