Ontario has issued this news release to clarify the rules governing how the HST will affect above-guideline rent increases. A change is proposed to the Residential Tenancies Act which would prevent tenants from being charged the HST in an above-guideline rent increase for utility costs. Under the existing regulations, a landlord would be allowed to apply for an above-guideline rent increase based on the HST on utility costs.
Ontario News Release, “Clarifying Rules on Above-Guideline Rent Increase”
Tax Development Apr 12, 2010