Thursday November 26th, 2009 - Government Raises HST Rebate Threshold to $525,000

The masterful lobbying effort by the real estate market succeeded in convincing Gordon Campbell government’s to raise the HST rebate threshold on new homes to $525,000. 

The sector complained that the HST sneak attack was intended to hurt the home developers by lowering their profit margins.  The industry started an aggressive public campaign against the government’s new tax, explaining that it would grossly inflate prices for new homes.

Apparently, well-connected real-estate players let the Liberal government know how angry they were over the proposed legislation after the home-building industry donated almost $750,000 for campaign contributions last year.  Obviously, the industry’s persistence paid off.

The government has originally set the rebate threshold at a mere $400,000, saying that it made sense because $400,000 was the average home price in B.C., but the Vancouver market is extremely different.  It is impossible to find a nice home for under than price in Vancouver.

While the Liberals have succeeded in pleasing one corporate group, now others, such as tourism, mutual-fund managers, school districts, and universities, are all screaming to have their desires met also.