HST Transition Rules for New Real Estate Purchases in 2012
Government announces the transition rules for the HST early
BURNABY, BC (February 17, 2012) – The Honourable Kevin Falcon, Minister of
Finance held a press conference today in Victoria to announce transition rules
for the harmonized sales tax and the affect it will have on the home building
industry. Effective April 1, 2012 the threshold for new housing rebates will be
increased from $525,000 to $850,000, including secondary homes.
“We are elated the Provincial Ministry of Finance and the Federal Finance
Department asked for our input and that our provincial government listened
to the lobbying efforts of CHBA BC,” said CEO, M.J. Whitemarsh. “We had the
confidence the Government would take our concerns to heart and implement
the best solution for our industry, the news today was worth the wait and is even
better than we could have anticipated.”
Since the referendum results to rescind the tax, the Canadian Home Builders'
Association of BC (CHBA BC) has worked diligently providing information from
members to the government requesting the implementation of the transition
rules be done as simply and quickly as possible to prevent any further stalling of
the residential housing industry.
“The out-of-box forward thinking from the Government has created a stable
situation for all CHBA BC members who build secondary homes,” Whitemarsh
said. “Houses purchased as of April 1st will ultimately be receiving a $42,500
discount, now that the threshold has been raised.”
Releasing the transition rules on housing early was a wise and bold move on
government’s part, one that is mutually beneficial. CHBA BC lobbied for a tax
rebate to be created for consumers on new home purchases and renovations, so
the industry could move forward and gain momentum once again.
“Raising the threshold is a brilliant decision that is fair and equitable, a huge
benefit to all consumers that will spur the market,” said Doug Wittal, President
of CHBA BC. “Including the second home market outside the GVRD and CRD
will create a huge boom, creating jobs and pushing the industry forward in very
The 2012 budget will be announced Tuesday, February 21, 2012.
About CHBA BC
The Canadian Home Builders' Association of British Columbia is the voice of the
residential construction industry in BC fostering a housing environment in which
the industry operates effectively and professionally
Director of Operations, Marketing & Communications
Canadian Home Builders' Association of BC