Ontario (Harmonized Sales Tax) HST Calculator

Rumas

Rumas

Administrator
Staff member
Take a look at how the Harmonized Sales Tax (HST) affects prices for a selection of household goods and services currently exempt from provincial sales tax (PST). Enter your costs per month before taxes in the from in the link below. [FONT=Arial, Arial, Helvetica]Starts July 1, 2010[/FONT].

HST - News - Ottawa Citizen

The HST is the combination of the Goods and services tax (GST) and Provincial sales taxes (PST). They are being Harmonized! Harmonized is a Orwellian term.

More info on HST can be found here:

Goods and services tax/harmonized sales tax (GST/HST)
 
Rumas

Rumas

Administrator
Staff member
I will shell out $2,040 more taxes to pay for our basic necessities

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Thank you to the Ottawa Citizen for making available the Ontario HST calculator on its website. You simply place your monthly expenses in those household expenses that will have an effect on the new HST and it will then tell you how much extra you will pay on a monthly basis.

Then I went on the Ontario Liberal website to their online calculator in which you enter your current income and it tells you how much money in taxes you will save on their personal income tax cut.

When I did this exercise my worst fears came to light. I will save about $23 per month on my income tax. However, I will be paying more than $193 a month in extra HST. This means I will be giving Dalton McGuinty and his tax-and-spend Liberal government an additional $2,040 per year in taxes.

Ontarians should really be concerned and start speaking out more as this new HST will adds up to a big bite out of our spending dollars.

On my way to work this week, I filled up my truck with gasoline and bought a coffee. I take small comfort from knowing I won't pay 11 more cents in PST on my morning Tim Hortons coffee, which is exempt, yet my truck took 75 litres of gas and, starting next July, this fillup will cost me $6 more...


Continue reading here:

I will shell out $2,040 more taxes to pay for our basic necessities
 
Rumas

Rumas

Administrator
Staff member
[FONT=Arial, Arial, Helvetica]Ontario Harmonized Sales Tax (HST)[/FONT]

[FONT=Arial, Arial, Helvetica]It is proposed to combine the 8% Ontario sales tax and the 5% GST into a single 13% value-added sales tax that would be federally administered, starting July 1, 2010. There are some made-in-Ontario components proposed:
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  • [FONT=Arial, Arial, Helvetica]Books, children's clothing and footwear, diapers, children's car seats and car booster seats, and feminine hygiene products would be exempt from the 8% provincial portion of the tax.[/FONT]
  • [FONT=Arial, Arial, Helvetica]Purchasers of newly constructed homes under $400,000 would not be subject to an additional tax burden. Buyers of new homes valued between $400,000 and $500,000 could claim a proportional rebate.[/FONT]
  • [FONT=Arial, Arial, Helvetica]New rental housing rebate, similar to the enhanced new housing rebate, for new residential rental properties.[/FONT]
  • [FONT=Arial, Arial, Helvetica]Up to $400 million in one-time sales tax credits would be provided to help small businesses make changes to point-of-sale and accounting systems.[/FONT]
  • [FONT=Arial, Arial, Helvetica]Provincial portion of the tax rate on transient accommodation, such as hotel rooms, would rise from 5% to 8%. Approximately $40 million a year would be allocated to support destination marketing in Ontario tourism regions once these are established.[/FONT]
[FONT=Arial, Arial, Helvetica]Additional point-of-sale exemptions announced November 12, 2009:
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  • [FONT=Arial, Arial, Helvetica]Print newspapers[/FONT]
  • [FONT=Arial, Arial, Helvetica]Qualifying prepared food and beverages that are ready for immediate consumption and are sold for a total price of not more than $4.00[/FONT]
  • [FONT=Arial, Arial, Helvetica]Used vehicles purchased privately (not from an HST registrant) would still be subject to a retail sales tax of 8%.[/FONT]
  • [FONT=Arial, Arial, Helvetica] As part of the proposed sales tax reform, cash payments would be provided to Ontario tax filers, in each of June and December 2010, and June 2011.[/FONT]
  • [FONT=Arial, Arial, Helvetica]Eligible families with income of less than $160,000 would receive 3 payments totalling $1,000.[/FONT]
  • [FONT=Arial, Arial, Helvetica]Eligible individuals who earn less than $80,000 would get 3 payments totalling $300.[/FONT]
  • [FONT=Arial, Arial, Helvetica]To qualify for the 2 payments in 2010, a 2009 tax return would have to be filed.[/FONT]
  • [FONT=Arial, Arial, Helvetica]To qualify for the 2011 payment, a 2010 tax return would have to be filed.[/FONT]
  • [FONT=Arial, Arial, Helvetica] All changes are subject to legislative approval.[/FONT]
[FONT=Arial, Arial, Helvetica]
Proposed General Transitional Rules for Ontario HST

Transitional rules are required to determine which tax - the existing Retail Sales Tax (RST) or the Ontario component of the HST - would apply to transactions that straddle the July 1, 2010 implementation date.
The HST will generally apply to prepayments starting on May 1, 2010, for goods and services that will be provided after Jun 1, 2010.
Some items addressed in the proposed HST transitional rules:
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  • [FONT=Arial, Arial, Helvetica]Funeral services - HST will not apply to funeral services where the contract is entered into before July 1, 2010.[/FONT]
  • [FONT=Arial, Arial, Helvetica]Transitional RST inventory rebate for residential contracts - A rebate will be available for RST embedded in construction materials purchased before July 1, 2010, but used in residential property contracts on or after July 1, 2010.[/FONT]
  • [FONT=Arial, Arial, Helvetica]Subscriptions to newspapers, magazines and other periodical publications - HST will not apply to subscriptions paid before July 1, 2010.[/FONT]
  • [FONT=Arial, Arial, Helvetica]Passenger transportation services - HST will generally not apply to round-trip journeys that commence before July 1, 2010.[/FONT]
  • [FONT=Arial, Arial, Helvetica]Freight transportation services - HST will generally not apply to the cost of a freight transportation service performed on or after July 1, 2010 if the service is part of a continuous freight movement of goods that begins before July 2010.[/FONT]
[FONT=Arial, Arial, Helvetica] Further information:

Canada Revenue Agency[/FONT]

[FONT=Arial, Arial, Helvetica]Ontario Ministry of Revenue[/FONT]

[FONT=Arial, Arial, Helvetica] Ontario Newsroom[/FONT]
 
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