HST Confusion for New Home Builders
British Columbia's HST is dead but it continues to trouble developers of new homes, who say confusion over the HST phase out has stalled sales and forced price discounting. A Vancouver Board of Trade panel discussion on the Metro Vancouver housing market was told last week that the main issue is new homes priced at $525,000 or more, which don't qualify for HST rebates.
Ward McAllister, president and CEO of McAllister Ledingham Ltd said "any of our product at $525,000 or over is just sitting." Developers are forced to make deals and discount prices, he said. The former president of the Urban Development Institute said the development industry has been "begging" for clear transition rules on the HST since a summer referendum killed the controversial tax. "The first meeting with the province to discuss this is November 15," he said.
"This is really hurting us in the new home business," said McAllister. "We don't have any transition rules yet. What is amazing to me is that it took three days to bring this tax in and now they are telling us it will take up to 18 months to unravel it."
Source: Western Investor