Remember when the GST was implemented?  Your Property Manager came to your Strata Council and told them they needed to budget an additional 7% on just about every expense to cover the GST.  The proposed HST will now add another 7% onto your Property Management fees, costs of major repairs, your plumber’s bill, your gardener’s bill, your gas bill, and just about every other expense that makes up your condo fees.  As a Council Member in my own Condo, I am wondering where our seniors and owners who could barely get into the market will come up with the extra money.  For some, it is a struggle just to come up with extra money for levies on large ticket items like a new roof, re-plumbing, exterior painting and any other upgrades needed over time.  

And, let’s consider the tax that different levels of government collect on new housing in the lower mainland, which is the highest in the country.  A brand new home in Premier Gordon Campbell’s neighborhood, the West Side of Vancouver, sells for approximately $1,700,000 (not $400,000 as purported in the media).  The typical buyer for this home is someone who has worked their way up from a 1 Bedroom Condo, to a 2 Bedroom Condo, to a Townhouse, then a small older home, and now they are finally getting into a new home.  At this price level, we are talking about a 2,400 sq. ft., 3 bedroom house on a small 33’ x 122’ lot - NOT a mansion.  This buyer has paid Property Transfer Tax along the way, of 1% to $200,000 plus 2% on the balance of the purchase price on every "move-up" property, roughly estimated at a total of $44,000.  Now let’s look at the taxes on a new home of $1,700,000.

(Federal) GST at 5%	$ 80,000
(Provincial) Property Transfer Tax	$ 32,000
HST on Real Estate Fee	$  5,640
Additional 7% under HST (less $20,000 rebate)	$ 99,000
Total Tax collected	$216,640

The amount of tax collected represents an Annual Salary to a high income earner.  

The Real Estate Board of Greater Vancouver, Fraser Valley Real Estate Board, and B.C. Real Estate Association will institute a comprehensive lobbying campaign on this issue and have already met with Minister of Finance, Colin Hansen.  If you have not already voiced your concerns about the proposed HST, contact your MLA : www.leg.bc.ca/Mla/3-1-1.htm