Ontario has issued this notice and backgrounder to provide details on further proposed measures that build on the single sales tax package that was announced in the 2009 Ontario budget. The province is proposing enhancements to the new housing rebate and the rebate for new rental housing, along with announcing the transitional rules that will apply for the acquisition of residential real property.
The province has announced that new housing rebates will be enhanced to apply to homes across all price ranges. New home buyers would receive a rebate of 75 per cent of the provincial portion of the single sales tax on the first $400,000, or a maximum of $24,000.
In order to stimulate investment in affordable rental housing, the province is also proposing a rebate similar to the new housing rebate. This new rebate would be available for new rental housing, including investment properties to be rented out as primary places of residence.
The province also announced proposed transitional rules for new housing, where transactions straddle July 1, 2010, the effective date of the single sales tax. Generally, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial component of the single sales tax, even if both ownership and possession are transferred to the purchaser on or after July 1, 2010. The single sales tax would also not apply on new home sales where ownership or possession is transferred before July 1, 2010.
In addition, there will be transitional tax adjustments applicable to builders for sales of newly constructed or substantially renovated homes sold under written agreements of purchase and sale entered into on or before June 18, 2009, where both ownership and possession are transferred after June 2010.
For further information, please click on the link below to the bulletin and backgrounder.
On Backgrounder Housing Rebate and Transitional Rules
“Helping Homebuyers and the Housing Industry with an Enhanced New Housing Rebate, A New Rental Housing Rebate and Transitional Rules”