New Harmonized Sales Tax
Most people in Muskoka don’t get excited about moving in the winter months, and thoughts about purchasing a cottage tend to creep up closer to spring; however, you may want to reconsider in light of recent tax changes that will take effect in July.
Despite weeks of Opposition resistance and public backlash, legislation creating the harmonized sales tax was passed on Wednesday. Ontario will soon be following the footsteps of Quebec, New Brunswick, Nova Scotia and Newfoundland and Labrador in moving to a single 13% sales tax.
The HST comes as part plan to help reposition Ontario as it comes out of a recession and the government estimates it will help create almost 600,000 jobs in Ontario over the next decade.
To help offset the rise in household expense, the province says it will offer $10.6 billion worth of tax relief over the next three years:
Cash payments of up to $1,000 for in 2010 and 2011 for families earning less than $160,000 a year.
A new permanent $260 refundable sales tax credit for low to middle-income adults and children.
An enhanced refundable property tax credit for low and middle-income homeowners and tenants.
New homes under $400,000 would receive a rebate
$1.1 billion in personal income tax cuts
For more information search HST on the government website.