There are many reason why people are upset about the new harmonized sales tax that will be coming into effect in 2010. While there are pro's and con's to the tax, another con to HST was discussed in a recent article that appeared in the Toronto Sun.
Condo owners will be facing a hike in their condo fee's and it is twofold. Currently the condo fee is subject to GST only on certain services and when HST comes in there will be an additional 7% added to those services which will drive up the condo fee's.
In addition, condo boards will also have to increase the reserve fund and that will also mean increasing monthly condo fee's and will affect newer condo owners even more as they are building the reserve fund to begin with.
The article goes on to point out that in some cases the condo fees will now be more than the mortgage payments.
The provincial government again defends its decision saying the cost will be offset in tax breaks.
Read Full Article Here: Harmonized tax a 'mess' for condos
If you have any comments regarding the harmonized sales tax, let us know.
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