Ontario to provide 75 per cent tax rebate on first $400,000

ROBERT BENZIE
QUEEN’S PARK BUREAU CHIEF
Premier Dalton McGuinty’s Liberals are sweetening the pot in a bid to make the controversial harmonized sales tax more palatable to Ontarians.

In a surprise move this morning, the government announced it was capitulating to homebuilders’ demands by effectively reducing taxes proposed on new homes.

Under the change, buyers of new homes in all price ranges would receive a 75 per cent rebate of the 8 per cent provincial portion of the HST on the first $400,000 of the cost.

In the March 26 budget, Finance Minister Dwight Duncan had said that while people purchasing new homes costing less than $400,000 would be eligible for the tax break, those buying more expensive homes would get little relief.

It would have been a recipe for disaster for consumers and developers because there would be a gradual increase in taxes on homes costing between $400,000 and $500,000 and a massive one on those priced above $500,000.

For residents of Greater Toronto, where homes are more expensive than in the rest of Ontario, it would have been especially onerous.

“During these challenging economic times, the McGuinty government’s enhanced housing rebate would improve affordability for more homebuyers – increasing the most generous housing rebate of its kind in Canada,” Duncan, who was not available for comment, said in a news release.

The Liberals also announced a new rebate to encourage builders to construct rental housing units.

The HST, which will blend the 8 per cent provincial sales tax and the 5 per cent federal GST, is to come into effect July 1, 2010.

Since it was announced early this spring, the government has weathered an avalanche of criticism because the business-friendly levy will increase taxes on gasoline, heating fuel, funerals, newspapers, fast-food value meals, legal services and a slew of other things.

A Toronto Star-Nanos Research poll last month found 67 per cent of people polled have a negative view of the melded tax compared to 23 per cent seeing it as positive and 10 per cent unsure.

(NC)—A new water heater may not be at the top of your shopping list, but when the time comes to replace an existing unit, you’ll need to act quickly. The good news is that domestic water heaters are now included in the ENERGY STAR initiative in Canada, and that should make your shopping experience both easier and more rewarding.

ENERGY STAR is the international symbol for energy efficiency, used by consumers to select household products that will save them money and reduce energy-related greenhouse gas emissions that have been linked to climate change. Water heaters are one of the biggest energy consumers in the home, second only to space heating equipment. Although it may be tucked away in a corner of the basement, your water heater is used every day, so it pays to select an energy-efficient model.

Water heaters that qualify for the ENERGY STAR symbol use at least five percent less energy than conventional models – and that means your utility bills will be at least five percent lower than might otherwise be the case. Features such as better tank insulation, heat traps and more efficient burners set ENERGY STAR qualified models apart from the competition.

The new ENERGY STAR specification applies to gas, heat pump and solar water heaters (electric and oil-fired models are not included in the program). In addition to meeting strict energy efficiency requirements, ENERGY STAR qualified water heaters must offer warranties ranging from six to 10 years on most parts, depending on the type of unit.

When shopping for a new water heater, make sure to look for the ENERGY STAR symbol on the product, its packaging or literature. More information is available at energystar.nrcan.gc.ca or by calling 1-800-OCANADA.

In today’s Toronto Star is an article about a Provincial web site that gives indepth information on schools, including demographics, average marks, comparison to the Provincial averages, etc.

What is somewhat disturbing is that the Provincial average is so low; for example, only 61% of Grade 3 students met the Provincial standards in 2007-2008. WOW! There’s something wrong there.

There is some uproar over this web site, and investigations into whether it should be taken down. For me, and for my kids, I would be using it!

Would you?

Bringing water up from Lake Ontario would create huge pressure for development, opponents argue.

Leslie Adams pores over a Google Maps image of thousands of hectares of prime farmland in Halton Hills – and fears the worst.

Halton Region council is considering building a “big pipe” along Trafalgar Rd., north of Highway 401, that will provide water and sewage services to tens of thousands of potential new residents southwest of Georgetown, in a municipality serviced today by wells and a stream-based sewage treatment plant.

Adams, who heads the group Protect Our Water and Environmental Resources, says the pipe will create pressure to gobble up 10 times the area that planning consultants think should be developed.

Read the full story here

After a frigid winter that saw existing home sales plunge dramatically, the Toronto-area housing market continues to experience a fragile spring thaw.

The Toronto Real Estate Board reported 8,107 sales yesterday for April, down 7 per cent from a year ago, but less than the 47 per cent free fall experienced in January.

“Conditions in the resale housing market have improved markedly this spring,” TREB president Maureen O’Neill said.

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