B.C. housing industry still waiting for HST Plan B

In the wake of the HST referendum, housing contractors hope B.C. consumers won't wait 18 months to spend on renovations and new homes.

Peter Simpson is President and CEO of the Greater Vancouver Home Builders' Association.

Colin Oswin – BC Local News

Hold on to your hats: The rejection of the HST has created a boatload of uncertainty for the B.C. housing industry.

Elections B.C. announced on Aug. 26 that 54.73 per cent of the voters who participated in the referendum wanted to get rid of the HST and move back to the old PST system, while 45.27 per cent wanted to keep it.

The move to the HST in July 2010 added seven per cent to the cost of labour in home renovations – a tax that wasn’t applied under the PST. New homes over $525,000 are also taxed under the HST – for the time being.

Now, in the wake of the referendum, contractors in B.C. are caught in the transition back to the PST, which Finance Minister Kevin Falcon said would take 18 months.

Peter Simpson, President and CEO of the Greater Vancouver Home Builders’ Association, says the provincial government didn’t offer up much of a tax plan that businesses can use for the intervening year-and-a-half.

Will B.C. residents step away from the market? Simpson says no one can predict the exact outcome, but he expects consumers will put off some reno projects, lowering revenue for contractors.

Emergencies like a leaky roof will get taken care of, he says, but a kitchen or a media room reno may have to wait.

One solution would see the province offer tax rebates for renovation projects between now and the shift back to the PST, but Simpson says nothing like that was mentioned by Falcon or Premier Christy Clark after the results came out – even though she said the Liberals had prepared a Plan B, just in case the HST was rejected.

“They need a Plan C, because Plan B is not cutting it for our industry right now,” Simpson says.

“This whole HST has been a debacle since it was introduced in July 2009 and it will continue 18 months from now.”

He says the government needs to come up with a plan to get people to pull the trigger on renos and home purchases immediately, not in 18 months.

“There has to be some kind of system that makes it neutral whether you do it now or wait,” he says. “They have to address these issues.”

Simpson notes that by the time it’s all said and done and B.C. moves back to the PST, four years will have passed since the HST was introduced. That’s enough time to earn a university degree.

Rob Currie, co-owner of waterproofing contractor Basement Systems Vancouver Inc., says consumers were waiting even before the referendum result was handed down because they weren’t sure how the tax situation would affect the bottom line.

He says the province needs to hammer out a transition plan very quickly, so consumers can make their decisions and contractors can get to work.

“People who are out there bidding and quoting need to have a real understanding of where we’re at,” he says.

“We’re looking for a policy to very clearly explain the plan, so we can make decisions and our customers can make decisions as well.”

He says lots of people just want some clarity on a very simple question: how much am I going to spend?

With the tax regime in a state of flux, Currie says no one knows.

Just Posted

West Shore RCMP better than municipal police forces, mayors say

West Shore municipalities funding more officers and civilians at local detachment

Increasing cloudiness with a high of 12 C for today

A look ahead at this week’s forecast

Purple Day marks long journey for Gorge resident

Legislative Assembly to recognize epilepsy on Tuesday

Stay alert for spring sweepers on Greater Victoria highways

Motorists asked to be on the lookout as road crews prepare for spring

The shores will not rock in 2019

Atomique Productions announce Rock the Shores festival will not return in 2019, future is uncertain

Mueller finds no Trump collusion, leaves obstruction open

But while Mueller fully ruled out criminal collusion, he was more circumspect on presidential obstruction of justice

Woman wants Tofino to get a nude beach

“They may enjoy a surf and then walk around naked and just be free.”

Ice climbers scale Canada’s tallest waterfall on Vancouver Island

Ice climbers Chris Jensen, Will Gadd and Peter Hoang made history

Sparks fly as SUV speeds down wrong side of Highway 1 trying to flee RCMP

Captured on video, the vehicle headed westbound against oncoming traffic before crashing

Fundraising campaign launched for man caught in SilverStar avalanche

In only two days, the GoFundMe surpassed its $15,000 goal

B.C. doctor fined $5,000 for accessing records of woman pregnant with his child

Doctor admits to accessing records of the woman carrying his child

Video service to compete with Netflix, Amazon expected from Apple on Monday

The iPhone has long been Apple’s marquee product and main money maker, but sales are starting to decline

Kootenay city councillor starts nationwide climate caucus for municipal politicians

Climate Leadership Caucus has 57 members including seven mayors

Edmonton judge to rule on whether Omar Khadr’s sentence has expired

Canada’s top court ruled punishment handed Khadr for alleged acts committed in Afghanistan when he was 15 was to be a youth sentence

Most Read