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.

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

A Heffley Creek peacock caught not one - but two - lifts on a logging truck this month. (Photo submitted)
Heffley Creek-area peacock hops logging trucks in search of love

Peacock hitched two lifts in the past month

A tent housing a mobile vaccination clinic. (Interior Health/Contributed)
Second dose vaccinations accelerating throughout region: Interior Health

To date, more than 675,000 doses have been administered throughout the region

Okanagan Lake (File photo)
Thompson-Okanagan ready to welcome back tourists

The Thompson-Okanagan Tourism Association expects this summer to be a busy one

..
Four Paws Food Bank-Barriere helps area pet owners

Leia Kett (as in Star War’s Princess Leia) has been a Barriere… Continue reading

Barriere resident Donna Genier was happy to be able to gather with a small group of family and close friends to play a game of scrub last Sunday at the Barriere ball fields in memory of her youngest son Kurt Genier. Kurt passed unexpectedly in 2014 Since then, starting in 2015 an annual Memorial Slow Pitch Baseball Tournament has been held in Barriere to remember the young man who loved to play baseball. Unfortunately, the tourney had to be cancelled in 2020 and 2021 due to the pandemic. (Elli Kohnert photo)
Kurt Genier remembered with ball game in Barriere

The annual Kurt Genier Memorial Slow Pitch Ball Tournament was not able… Continue reading

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

An old growth cedar stands in a cut-block within the Caycuse Valley. More than 100 prominent Canadians, have signed an open letter calling for the immediate protection of all remaining old-growth forests in B.C. (Submitted)
Brian Mulroney and Greta Thunberg among 100 celebrities pushing to save B.C. old growth

List includes Indigenous leaders, scientists, authors, Oscar winners

The border crossing into the United States is seen during the COVID-19 pandemic in Lacolle, Que. on Friday, February 12, 2021. THE CANADIAN PRESS/Paul Chiasson
U.S. border restrictions to remain in place until at least July 21

Safety minister says Canada, U.S. extending restrictions on non-essential international travel

Himalayan Life helped finance the construction of Nepal’s Yangri Academic Centre and dormitories after a 2015 earthquake devastated the valley, killing more than 9,000 people. (Screen grab/Peter Schaeublin)
B.C. charity founder pledges to rebuild Nepalese school swept away by flash floods

Six years after an earthquake killed more than 9,000 people, Nepal faces another catastrophy

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the patients likely acquired the virus in the hospital

The first suspension bridge is the tallest in Canada, with a second suspension bridge just below it. The two are connected by a trail that’s just over 1 km. (Claire Palmer photo)
PHOTOS: The highest suspension bridges in Canada just opened in B.C.

The Skybridge in Golden allows visitors to take in views standing at 130 and 80 metres

BC Green Party leader and Cowichan Valley MLA Sonia Furstenau introduced a petition to the provincial legislature on Thursday calling for the end of old-growth logging in the province. (File photo)
BC Green leader Furstenau introduces old-growth logging petition

Party calls for the end of old-growth logging as protests in Fairy Creek continue

Most Read