Spring 2010 Newsletter
 

FAQ on the HST and your Renovation

There's been a great deal of discussion around the Harmonized Sales Tax. Since the initial HST announcement, the Ontario and Waterloo Region Home Builders Associations have been meeting with MP's and MPP's. Jamie Adam, our President has also attended many of these meetings. Despite their great efforts, it appears the HST will be coming into effect on July 1, 2010 without any changes for the Renovation Industry. However there's still a few more months and we will continue to lobby on behalf of our clients.

Below are answers to some FAQ'S based on the information available to us as of mid March.

How much more will my renovation cost after the introduction of the HST? It's anticipated there will be an average of 4% - 5% increase overall.

Can I prepay to avoid the HST?

The key words here are "work completed". Work completed before July 1, 2010 will fall under the current tax system. Work completed after will be subject to the HST. Projects underway at this date, will have a break-off point based on work completed at June 30 and will need to be invoiced accordingly.

If you are planning a renovation and would like it completed before the tax harmonization, be sure to call early as schedules are booking up quickly. We will do our best to accommodate your needs!

I can purchase from an unregistered handyman and pay significantly less. Why should I pay more with your company?

It is anticipated that the underground economy will grow substantially because of the HST. Individuals who do not register a company can therefore get away without paying for expensive, but important items such as insurance, WSIB premiums, training, permits, fair labour rates, taxes, and many other costs. However for your protection, we highly recommend hiring a professional. In addition to the items above, they offer you the security of a written Contract and Warranty.

Furthermore, the sophistication of today's building systems and materials can create a health danger to both the homeowner and the structure if certain types of renovations are not completed properly. Professional renovators perceive the building as a complete system and are trained to understand the interplay between such factors as indoor air quality and ventilation, moisture management, occupant safety, structural issues, and how recent green initiatives can impact each of them.

For your home and your peace of mind, be sure to hire a professional.

Courtesy in part to John W. Hebert, Executive Director of the Greater Ottawa Home Builders.