In that meeting, we all impressed that government needs to get something figured out fast and that we cannot wait for answers regarding establishing transitional rules. We asked them to impress to the Finance Minister that strong and decisive leadership is needed now. Projects are on hold and many consumers are taking a wait and see approach. In that meeting, there were a number of proposals and ideas put forth regarding what might stimulate consumers to action, and various formulas were discussed whereby government could mitigate the negative impact of unraveling the current tax system making way for the reintroduction of the PST and GST.
Last week, BCREA contacted the Minister of Finance urging the speedy creation of transition rules and asked for clarification on whether PST will apply to new homes and how real estate commissions will be taxed. Real Estate Boards and REALTORS® across the province are getting lots of questions. It is difficult for a REALTOR® to offer professional counsel to their clients in light of these circumstances.
As the transition is not expected to be complete until March 31, 2013, this means some potential new home buyers may put off their purchases until that time if they sense that there is not a concrete plan and transition rules set forth. In particular, we know well that our market in this region is particularly sensitive to these issues of taxation given our recreational and secondary home markets for both new construction and resale."
Will keep you posted!
No comments:
Post a Comment