Thanks but no thanks.
9000.00 @ 15% = 1,350.00 maximum rebate
9000.00 + HST (13%) = 1,170.00 taxation
1,350.00 - 1,170.00 = 180.00 Total Savings
When the Rebate was announced, we new something else was coming, and it was not going to be good.
All "legitimate" contractors are in favor of the rebate, it leads to "above ground" revenue accountability, as the client is always looking for the best price.
As of July 1, 2010 our Liberal government is introducing HST on all renovations.
The GST @ 5% nominal tax, resulted in clients rarely requesting cash pricing.
The rebate of 15% is temporary. The result of this "Bait and Switch" taxation tactic on our industry will only result in Clients requesting cash pricing on all work exceeding 9000.00, as of July 1, 2010. At best, the rebate is temporary and only results in a break-even situation on actual implied savings for the consumer.
Underground workmanship has always been the illegal result of over taxation and the Clients need to remain on budget, not the contractor.
A negative, we all now have had to content with again, just as we were beginning to see a turn around.
Logically, starting July 1, 2010, more contracts will be forced "underground".
Legitimate contractors will again be forced to make some tough choices to remain in business and solvent.
We invite consumers and contractors alike too express their views on the Liberals Government's HST revision announcement.
Our industry needs fair and realistic taxation. Not motivation for an underground economy.
At this time, more than any other time. Consumers and Contractors alike need to have their voices heard by those responsible for a governmental taxation and rebate policy that results in the three brass monkeys taking control of our industry again.
I see the first step to this being an online "HANDYCANADIAN.COM" petition, for all users of this website. Reply to this post and help us get the petition started. Your voice must be heard.
Welcome to all!
First I would like to say that things are just going to get worse and customers are going to be looking for the best deal they can get. GST is supposed to be charge the minute that a company makes over $30,000 for in gross sales. Believe me I know all about taxes. Any service you provide GST is supposed to be charged. If you Don't the government will tel you to pay it for the customers. In 2010 the government will be trying to put both taxes together and that is 13% that you will have to charge on every dollar they spend! The government is also looking into a program to expose contractors that are not licensed and don't have liability insurance that s great for all the reputable guy's out there. Companies that are registered better get there GST # now or you will Have a hard time getting one in the future.
I'm with you on this Colin- no better way to slow down an already sluggish industry than slapping another tax on it. Kind of reminds me of the dirt tax a few years back. Bottom line for me is my family comes first, everything else don't matter.
The underground will thrive, no doubt; it always has- but I do believe it's about to get a lot busier because the average person can only stretch a dollar so far. This is only the beginning- once a new tax is introduced, they'll wait awhile and then they'll find other ways to fleece us. And as you say, it's just a matter of time before a lot of 'by-the-book' contractors are going to have to make some hard choices. Hopefully someone with half a brain in Ottawa (a stretch, I know) will knock this thing out. And maybe the Leafs will win the cup at the same time!
As a consumer, I agree that this new HST is not a good thing. We're getting out bathroom re-done this year which was supposed to save us $ because of the renovation rebate...but now, we won't be saving any money and could've waited longer.
Does anyone know: if we already have a contract signed prior to the effective date of this new tax, do we still have to pay the tax? (meaning will the contractor still be charged the tax? I'm not going to leave that for him to pay out of his pocket)
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