Scott Leaf Real Estate Marketing & Associates

The British Columbia Government has released important details today with respect to the transitional implementation of the HST with resepct to new Real Estate construction. The tax will not just occur on July 1, 2010 but will be phased in. This is an important consideration for builders and buyers.

To help homebuyers and builders transition to the HST, transitional rules would be provided for new housing transactions that straddle July 1, 2010. The proposed transitional rules would be similar to the transitional rules that applied when the GST was introduced. These rules, including builder reporting and disclosure requirements, would be administered by the CRA.

Generally, sales of newly constructed or substantially renovated homes would be grandparented where the written agreements of purchase and sale are entered into on or before November 18, 20096 and both ownership and possession of the homes are transferred under the agreement after June 2010. These sales would be subject to the federal component of the HST but would not be subject to the provincial component of the HST.

Grandparenting generally would apply to sales of newly constructed or substantially renovated single-unit homes7 to individuals. Also, grandparenting generally would apply to sales of residential condominiums to all persons including individuals.

Sales of these grandparented homes would not be eligible for the B.C. new housing rebate or new rental housing rebate.

Grandparenting would not apply to traditional apartment buildings, duplexes, mobile homes, floating homes and homes built by owners for their personal use where construction straddles July 1, 2010, as the general transitional rules would apply differently to these homes. However, these homes may qualify for one or more of the following proposed rebates: the PST transitional new housing rebate, B.C. new housing rebate, B.C. new rental housing rebate in addition to the GST new housing rebate and the GST new residential rental property rebate that may be available.

9 On a temporary basis, large businesses (those with annual taxable - including zero-rated - sales in excess of $10 million) and financial institutions would not be able to claim ITCs in respect of the B.C. component of the HST on certain inputs used in their taxable activities. After the first five years of the HST implementation, ITCs for these inputs would be phased in over a three-year period. Items for which ITCs would be restricted are listed at www.gov.bc.ca/hst.

Traditional apartment buildings, duplexes, mobile homes and floating homes would be subject to the general application of tax (see above) such that the proposed HST would apply to the sale of these housing types if both ownership and possession are transferred to a purchaser on or after July 1, 2010. However, if under a written agreement of purchase and sale, either possession or ownership is transferred prior to July 1, 2010, then the provincial component of the HST would not apply.

Builders who are registrants for GST/HST purposes would be able to recover the provincial component of the HST paid on most purchases through input tax credits (ITCs), as under the GST, with limited exceptions.9 However, builders of grandparented homes generally would be required to pay an amount-a transitional tax adjustment-based on the extent of the home construction or substantial renovation completed as of July 1, 2010. The transitional tax adjustment for grandparented homes is intended to approximate the amount of PST, approximately two per cent, which would have been embedded in the price of the home, on average, under the current PST regime. Builders would also be required to meet certain reporting and disclosure requirements for grandparented homes.

The calculation of the transitional tax adjustment is described below.

9 On a temporary basis, large businesses (those with annual taxable - including zero-rated - sales in excess of $10 million) and financial institutions would not be able to claim ITCs in respect of the B.C. component of the HST on certain inputs used in their taxable activities. After the first five years of the HST implementation, ITCs for these inputs would be phased in over a three-year period. Items for which ITCs would be restricted are listed at www.gov.bc.ca/hst.

Transitional Tax Adjustment - Single-Unit Homes

For grandparented sales of newly constructed or substantially renovated single-unit homes, including detached, semi-detached and attached homes, the builder generally would be required to pay a transitional tax adjustment where the home is completed in full or in part after June 2010.

The transitional tax adjustment for these homes would be calculated on the total consideration of the home, as established for GST purposes, based on the degree of construction or substantial renovation completed as of July 1, 2010, as follows:

The Province is proposing to increase the threshold for the B.C. HST new housing rebate from $400,000 to $525,000 to ensure that, on average, purchasers of new homes up to $525,000 pay no more tax due to harmonization, Finance Minister Colin Hansen announced today.

"We heard the concerns from consumers and industry about how the HST might affect home buyers, and this increase will move the threshold to above the average new home price in the province. At $26,250, this provides the highest maximum provincial rebate in Canada," said Hansen. "A similar rebate will also support the construction or substantial renovation of affordable rental housing."

Purchasers of new homes would be eligible for a rebate of 71.43 per cent of the provincial portion of the HST paid on a new home, up to a maximum of $26,250. Homes above $525,000 would receive a flat rebate of $26,250. This enhanced rebate represents a 30 per cent increase in the threshold and maximum rebate available.

The Province is also proposing transitional rules for new housing. The provincial portion of the HST would not apply to sales of new homes where ownership or possession is transferred before July 1, 2010. In addition, sales of new homes under written agreements of purchase and sale entered into on or before Nov. 18, 2009, would generally not be subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010.

Although the HST is expected to put a significant damper on new home sales this news is welcomed.

The Province of British Columbia has made legislative changes to
prevent the use of hand- held cellphones, portable electronic devices
and text messaging while driving.

Changes to the Motor Vehicle Act (MVA) upon legislative approval are to take effect on Jan. 1, 2010. At that point, only hands-free cellphones and devices that require one touch to activate will be permitted. Drivers in the Graduated Licensing Program (GLP) will not be permitted to use hands-free phones in addition to other prohibited activity.

A new fine in the amount of $167 will begin to be levied on Feb. 1, 2010. If drivers are caught texting or emailing they will receive an additional three penalty points. Further, drivers in the GLP will receive the $167 fine and three penalty points for any violation of this legislation.

In the coming months, government will launch an awareness campaign to educate drivers on the new law and the importance of paying attention to the road, pedestrians and other cars around them.

BRITISH COLUMBIA MOTOR VEHICLE ACT CHANGES

Prohibited actions and devices

* No operating or holding hand-held cellphones or other electronic devices.

* No sending or reading emails and/or texting (e.g., BlackBerry, PDA, cellphone).

* No operating or holding hand-held music or portable gaming devices (e.g., MP3 players, iPods).

* No manual programming or adjusting GPS systems, whether built into the vehicle or not, while driving. Settings must be programmed before driving.


Permitted actions and devices

Hands-free cellphones that are built in or securely fixed to the
vehicle, and used by pressing a single button - once only - in order
to activate a hands-free device for incoming or outgoing calls.
* Pre-programmed and voice-activated GPS devices.

* Two-way radios for industry (e.g., trucking, logging, oil and gas).

* Any of the above devices can be used if the vehicle is legally parked and not impeding traffic.

* Call 9-1-1 to report an emergency.

Graduated License Drivers (GLP)

* In addition to the above restrictions and permitted actions,
new drivers are prohibited from using hands-free communications devices, (e.g., cellphones), while driving.

Exemptions to the legislation include police, fire and ambulance personnel who may need to make calls in the performance of their duties, and motorists who need to call 9-1-1.

These changes bring British Columbia in line with the provinces of Manitoba, Ontario, Quebec, Nova Scotia, Prince Edward Island and Newfoundland. Alberta recently announced that it intends to introduce similar distracted driving legislation this fall.

West side of Maple Ridge 4 bedroom home for sale marketed by Scott Leaf Real Estate Marketing & Associates.  Located very near to Westview Senior Seconday and Laityview French Immersion Elementary School (L'Ecole Laityview) This beautiful, well kept corner lot home offers a large yard that could be used for RV parking.

This listing is coming to MLS soon, this sneak preview is just a taste of this listing.  Photogrpahs and Video of the inside coming soon!