The Ontario government has announced that it intends to combine Provincial Sales Tax (8%) and the Federal Government Goods and Services Tax (GST 5%), creating a 13% Harmonized Sales Tax. Important bullets are as follows:

*Although the HST is not in effect yet, it will be as of July 1, 2010

* HST will not apply on the purchase of re-sale homes.

* HST will apply to services such as moving costs, legal fees, home inspection fees, and Realtor commissions.

* HST will apply to the purchase of newly constructed home. However, the Province is proposing a rebate so that new homes across all price ranges would receive a 75% rebate of the provincial portion of the single sales tax on the first $400k,. For new homes under $400k, on average, there will be no additional tax compared to the current system.

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