Great article on the push for the protection of the Don and Humber rivers in Toronto:
Greenbelt sends fresh shoots into Toronto’s core
City requests protection for Don and Humber River valleys
Robyn Doolittle Urban Affairs Bureau
Two of Toronto’s most treasured corridors of natural habitat — the Don and Humber river valleys — are on their way to being permanently protected under the province’s Greenbelt plan.
“I’m hoping it will be done by the end of the year,” said Councillor Paula Fletcher, who chairs the city’s parks and environment committee. City staff have already begun work on the application.
(Read more via http://www.thestar.com/news/gta/article/772245–greenbelt-sends-fresh-shoots-into-toronto-s-core)
If you missed the February 1, 2010 deadline for the Home Renovation Tax Credit on your 2009 taxes, you might think about trying to complete your home renovations for next year before the HST kicks into play. Renovating prior to July 1, 2010 would save you the additional 8% tax; a big deal for extensive projects like kitchens, bathrooms, and additions.
While it is a great idea for tax credits, I have to urge caution for those wanting to rush these projects. If any of you have renovated in the past, you’re well aware of the backlog in booking great contractors. They are often booked months in advance and with this extra push for everyone to get things done I can imagine you’d be lucky to find a great person for the job who is available. Yes, this tax is something you’d be paying with no added value. But fixing a bad reno job is undoubtedly more costly. If left unfixed it could also devalue your home upon resale. There is only one Mike Holmes!
If you are going to go ahead with renovations prior to July 1 my advice is to take extra care in selecting your contractor. Call those references and get several quotes. If you manage to snag a great contractor who can get the job done hats off to you savvy home owners!
KH
What do you think of the idea for an amalgamated transit system for Halton, including Oakville, Burlington, Milton and Halton Hills?
This is what officials have been discussing recently and are currently developing the multi-billion dollar plan, entitled “The Road to Change”. While the pricetag is high, they state some impressive stats that make it seem like such a system is needed. As many as 48% of people who live in the region also work here. Will centralizing the transit systems (which are now all municipally run) increase revenue and reduce administration costs overall?
I’m going to be following this story, but for now here is the initial study: http://www.insidehalton.com/news/news/article/624796
I wanted to share this as it is the most comprehensive article I’ve found on the Tax Harmonization in Ontario. It’s a great thing to keep as a reference.
GB
Harmonized Sales Tax has its pros and cons, specialist says
Posted By WAYNE CAMPBELL , TRIBUNE STAFF
Posted 3 days ago
The new Harmonized Sales Tax is good for Ontario but does have winners and losers, says a local commodity tax specialist.
Theresa Beninger, Durward Jones Barkwell, gave that message to seniors at Lookout Ridge Retirement Home Thursday when outlining effects of the HST.
The 13% tax, which blends the 8% provincial sales tax with the 5% GST, comes into effect July 1.
The change, Beninger said, will strengthen Ontario by making it a better place to do business. She said whenever she has done an audit of PST for a business, the questions is: When will we blend PST and GST?
“If you can touch something it’s taxable,” she said explaining “all these little rules” attached to the PST.
“Business people are too busy running a business and employing people to deal learning all those little rules,” she said.
“It’s time to get rid of it. It’s an archaic system” that goes back to provincial and federal legislation restricting what provinces can tax.
By blending the taxes business can now get back its PST cost as its does its GST costs on items it buys “to run its operations,” she said.
This will make business more competitive internationally and attract investment to the province by lowering tax costs, she explained.
“Businesses don’t pay tax; consumers pay tax,” she said.
When the GST came into effect, prices did go down because businesses passed on savings from their GST rebates, she said.
“If businesses want to remain competitive they will have to reduce their prices.”
She said she did not expect them to pass on the full 8% PST portion of the HST, but it should be about 3% or 4% as businesses compete in a free market economy.
Consumers can put pressure on businesses that don’t pass on savings by complaining and shopping elsewhere, she said.
“We have winners and we have losers in this whole thing,” she said.
If you don’t get GST back now, you won’t get HST back, she said.
People may see rent go up as landlords see costs go up for heat and hydro and other utilities that don’t pay PST now, she added.
Charities and non-profits will get back 82% of their 8% added from formerly exempt PST, Beninger said. Social housing will likely see increased costs related to utilities and other services.
People who don’t pay GST won’t get HST rebates, she said.
The HST could affect nonprofit groups such as minor hockey leagues. They will have to pay increases for ice rentals and pass that on as increased costs of membership.
Effects on individuals will come from services that don’t pay PST now, such as those in accounting, law, landscaping and real estate commissions.
“If you don’t e-mail, learn, because cost of postage will go up,” she said.
Not effected are basic groceries, residential rent, items prepared for under $4, books, newspapers and children’s clothing and footwear.
“You can buy your coffee and doughnuts, but don’t buy for friends because that will put you over $4,” she said. They you will pay HST.
Shoes and dental costs will go up, she said.
Individuals will receive a 1% personal tax cut on their first $37,000 of income to offset HST. Lower-income people will receive $260 for each adult and child. And there will be an increase in the Ontario property tax credit, Beninger said.
Using her family figures — including veterinary services for her dysfunctional bird — Beninger calculates she and her husband will pay $920 more in tax in the first year HST is in effect. But offsetting that is $370 each in personal tax reductions, for a total $740 in reductions.
“So the difference is $180 — the cost of living in Ontario,” she said.
“The more you spend the more it will cost you,” she said about services individuals may use.
In planning for HST you should buy anything not qualifying for PST, such as golf memberships, before May 1. Some HST changes are being phased in before July 1.
You can buy gasoline for your car before July 1 when an additional 8% goes on, she said.
“You will see lineups at the tanks on June 30.”
Beninger said the advantage of the GST, PST and HST for the consumer is that they are “visible taxes.”
The goal of bring in the HST is to encourage businesses to come to Ontario.
“Ontario will have the lowest corporate tax rates in Canada,” Beninger said about a five-year process of tax adjustments. “We are now the highest.”
She said the HST sacrifices Ontario residents will make are to ensure “there will be jobs here for our children and grandchildren.”
http://www.wellandtribune.ca/ArticleDisplay.aspx?e=2459123
This is in line with a discussion I posted earlier this month on my activerain.com blog on the banks lobbying for changes in the mortgage rules. I really feel like these kind of measures were necessary to control the market and protect our economy.
I’ve copied a link below from the national post as it does well to summarize the changes to the mortgage rules in canada.
GB
http://www.nationalpost.com/news/story.html?id=2570533
Summary of Flaherty’s mortgage changes
Paul Vieira, Financial Post Published: Tuesday, February 16, 2010
Related Topics
On Tuesday, the Department of Finance announced three changes to the standards governing government-backed mortgages, that come into force April 19. Here are a summary of the changes.
QUALIFYING FOR A FIVE-YEAR RATE
The adjustments to the mortgage framework will require mortgage insurers to ensure that new borrowers qualify for a five-year fixed rate mortgage when calculating the gross debt service and total debt service ratios. The measure is intended to protect Canadians by providing them with additional flexibility to support mortgage payments at higher interest rates in the future.
LIMIT THE MAXIMUM REFINANCING
Borrowers seeking financial flexibility can currently refinance their mortgage and increase the amount they are borrowing on the security of their home up to a limit of 95% of the value of the property. The adjustment will lower the maximum amount of the mortgage loan in a refinancing of a government-backed high-ratio mortgage loan to 90% of the value of the property, consistent with the principle that home ownership is a tool for savings.
DISCOURAGING SPECULATION
This measure will require a minimum down payment of 20% for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation. At present, borrowers may purchase a residential property with a 5% down payment. The change will require a 20% down payment for small non-owner-occupied residential rental properties. Borrowers purchasing owner-occupied residential properties which also include some rental units (such as a duplex) will still be able to access government-backed mortgage insurance with a 5% down payment.
Read more: http://www.nationalpost.com/news/story.html?id=2570533#ixzz0fona1H6J
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