On July 23, 2009, Premier Gordon Campbell and Finance Minister Colin Hansen announced that, effective July 1, 2010, British Columbia will adopt a Harmonized Sales Tax (HST) combining the 7% Provincial Sales Tax (PST) with the 5% federal Goods and Services Tax (GST) resulting in a combined sales tax rate of 12%.

Impact on the real estate sector
The HST impacts the sector by increasing taxes on home purchase costs and associated professional services. New homes will be subject to the increased 12% HST rate, replacing the 5% GST now charged, and REALTOR® commissions, appraisals and other services that are currently exempt from PST will be subject to a 12% HST...click to read the BCREA article