Just say NO to Ontario`s Harmonized Sales Tax! 13% is NUTS

This is not something we can just sweep under the rug. Starting in July, 2010 residents in Ontario will have to pay a 13% sales tax. This means the 8% provincial sales tax (PST) will be added to many goods and services which were previously exempt. So this new sales tax will be blended with the 5% goods and services tax (GST). This is why they call it harmonized. I do not see any harmony here only discord.

We in Ontario and more specifically Windsor are just trying to get back on our feet after having the wind knocked out of us with the worst recession since the depression of the 1930s. I know past clients and friends calling me to do market evaluations on their homes because they are having trouble making ends meet and mortgage payments already. This has not been an easy year for anyone. Nothing like hitting you while you are already down!

I am not sure if consumers are fully aware of the implications. Literally everything purchased will be increasing by 8%. When you go to fill your car up with gas add on 8%. When you go out to buy groceries add 8%. When you go to buy a coffee and additional 8% (this is scary we real estate agents drink a lot of coffee!) Your hydro and heating bills are up 8% too. Get your hair cut you will have to add on another 8% too. For me by the time I walk out of the salon with everything I get done it is around $100.00 so this means an additional $8.00. This is crazy!

Many of my clients have been asking me how this will affect real estate in Windsor. This is for sure not a positive thing. This is what I have heard so far. There is no harmonized tax on condo fees but, for sure condo fees will be increasing. Reason being all of the utilities are being taxed the 8% so, therefore; the unit owners will have the increase passed on to them. Resale houses will not be taxed but, every else to do with the sale will. The movers, the legal fees, real estate commission, home inspection, home stagers, house insurance, title insurance. The new curtains, paint and odds and ends you will have to buy once you move into your new place.

If you are opposed to the eight per cent tax hike call on the Parliament of Ontario to cancel its plan to introduce the harmonized sales tax on July 1st, 2010. Take 2 minutes of your time and petition to the legislative assembly of Ontario. Click below for the link.

PETITION

As always if you require any real estate assistance do not hesitate to call upon me. Servicing the Windsor Essex areas –Riverside, Tecumseh, Lakeshore, Central Windsor, East Windsor, South Cameron, Lasalle, South Windsor, Old Walkerville, Waterfront Properties, Foreclosures and Bank Repossessed