The May 2009 budget had contained one commodity tax change: a Tobacco Tax increase of five cents per cigarette, tobacco stick and gram of fine cut tobacco, to be effective on May 5, 2009. This increase was actually put in place by the newly elected government, effective 12:01 a.m. on June 23, 2009.
There are only two major commodity tax announcements to consider in today’s budget.
In an effort to assist families, effective October 1, 2009, the 8% provincial component of the HST will be removed from all home electricity. This is an extension of the current program that rebates electricity only on usage in excess of 27.4 kWhs per day. To accomplish this, the tax will be removed from all domestic electricity billings; consumers will not be required to apply for this rebate.
Additionally, as announced on July 7, 2009, a New Home Construction Rebate will allow individuals building their own homes and purchasers of new homes to claim a rebate equivalent to 50% of the provincial component of the HST, to a maximum value of $7,000. In order to qualify for this rebate construction of the home must have commenced on or after January 1, 2009 and the home must be substantially complete prior to March 31, 2010. Only 1,500 homes will be eligible for this rebate.
Further information on Nova Scotia’s Columbia’s 2009 budget may be found on the province’s web site at Nova Scotia Department of Finance - Budget Documents 2008-10.
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