Harmonized Sales Tax Rebates

You may know that the Harmonized Sales Tax (HST) comes into effect on July 1, 2010 in British Columbia and Ontario, but do you know what type of HST rebates you are entitled to? The two provinces feature different rebate opportunities, so make sure you are aware of what’s available.

British Columbia

BC HST Credit: In BC, an annual HST Credit of $230 is available to families with a combined income of less than $25,000 or individuals with an income of less than $20,000. This rebate will be mailed to eligible recipients in the form of a cheque once their income has been verified through their previous year’s tax return.

BC Residential Energy Credit: British Columbia residents will receive a provincially administered credit equal to the provincial portion of the HST paid for energy (includes electricity, natural gas, heating fuel, heat, steam, propane, kerosene, firewood and pellets) for residential use. This credit will appear on the applicable energy bill but does not apply to service and administration charges.

BC New Home Rebate: New housing valued up to $525,000 will be eligible for a rebate of up to $25,250 for the provincial portion of the HST in British Columbia. This rebate applies to new owner-occupied housing as well as rental housing, and can also be used toward substantial renovations on homes and rental properties in BC. Previously owned properties in BC are not subject to the HST.

BC Public Service Organizations Rebates: Partial rebates of 57-87% of the provincial portion of the HST will be available to public service bodies such as municipalities, eligible school authorities, universities, public colleges, hospital authorities, registered charities and qualifying non-profit organizations.

BC Instant Rebates: The following items will receive instant rebates for the provincial portion of the HST at point of purchase:

• Fuel for vehicles (gasoline, ethanol blends, diesel, biodiesel)
• Books
• Child-sized clothing and footwear
• Children’s car seats and car booster seats
• Children’s diapers
• Feminine hygiene products

Ontario

HST Transition Payments: Families (including single parents and senior couples) with an income of less than $160,000 will receive three HST Transition Payments totaling $1000. Individual Ontario residents with an annual income of less than $80,000 will receive three Transition Payments totaling $300. The HST Transition Payments will be delivered to eligible Ontario tax filers aged 18 and over in June 2010, December 2010, and June 2011.

New Home Rebate: Ontario residents will receive rebates of up to $24,000 when buying a new home or new residential rental property. Unlike the British Columbia New Home Rebate, all new homes are eligible for this rebate in Ontario, regardless of price. Previously owned homes in Ontario are not subject to the HST.

Ontario Instant Rebates: The following items will receive instant rebates for the provincial portion of the HST at point of purchase:

• Qualifying prepared food and beverages sold for $4 or less
• Books and Print newspapers
• Child-sized clothing and footwear
• Children’s car seats and car booster seats
• Children’s diapers
• Feminine hygiene products