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NDP rolls out rebate for new houses
NDP rolls out rebate for new houses
By DAVID JACKSON Provincial ReporterThu. Aug 13 - 6:12 AM
Home builders and homebuyers stand to benefit from a new tax break,Premier Darrell Dexter said Wednesday.
Buyers of newly constructed homes can now apply for a 50 per cent rebateon the provincial portion of the harmonized sales tax.
It's a program the Nova Scotia Home Builders' Association suggested tothe three major political parties before the spring election.
The NDP put the program in its platform, but with a start date of May 1.The government has changed it to Jan. 1, at the association's urging. Amaximum of 1,500 rebates will be offered.
To qualify, buyers of new homes must have a municipal building permitdated on or after Jan. 1, 2009, and before April 1, 2010. The home mustbe the primary residence and construction has to be completed betweenJan. 1, 2009, and March 31, 2010, or the purchase closed by March 31,2010.
Cottages and income properties don't qualify.
Mr. Dexter said the government changed the start date because theassociation was concerned that homes started between January and Maymight not have sold because the tax break came later in the year.
"They indicated that they had been working through the winter, trying tokeep people employed, so . . . there were a large number of buildingpermits between Jan. 1 and the May 1 date. The result of that, of course. . . potentially, would have been to strand that inventory," Mr.Dex-ter said.
Speaking at a Dartmouth townhouse construction site, Mr. Dexter saidthere were about 600 permits issued in the province between January andMay, although he didn't know how many homes were under construction.Opposition leaders said the tax incentive sounds more like a reward.
"I don't see it stimulating any activity that otherwise wouldn't havehappened," Liberal Leader Stephen McNeil said.
Mr. McNeil also said he is skeptical whether a $7,000 benefit will beenough to entice people making a $200,000 or $300,000 purchase. And hewondered whether home builders would increase their prices, negating thebenefit of the tax break to the buyer.
Mr. Dexter said buyers will negotiate their prices, and he thinkscompetition will take care of Mr. McNeil's concern.
"There are a lot of companies out there that are really looking to getwork, so I expect there to be a very competitive market, and that thisrebate will ultimately benefit those who are intended to benefit," hesaid.
Interim Tory leader Karen Casey said people now looking at buying a newhome may be concerned that the 1,500 rebates will be gone by the timethey apply.
Service Nova Scotia Minister Ramona Jennex said at the news conferencethat the website www.getyourrebate.ca <http://www.getyourrebate.ca>will track the number of applicants and rebates.
Ms. Casey said the original intent of the program - to spur economicactivity and keep tradespeople working - was good, but that doesn't seemto be happening.
"I consider this now a reward, rather than an incentive," she said.
Andrew Holley, president of the home builders association, said he wouldhave preferred the qualifying date go back to October, but he was stillpleased with the new program.
"We didn't get everything that we wanted, but it was a good compromise,"Mr. Holley said.
Mr. Dexter said the NDP did its own due diligence on the proposal anddecided the province could do it.
The province would forgo $10.5million if the maximum number of peoplegets the top rebate.
The maximum - $7,000 - kicks in for homes costing $175,000 or more.
"I don't think there's anything wrong with listening to the stakeholderswho are involved in the industry, and thereby turn-ing the wheels of theeconomy," Mr. Dexter said.
"That's really what we're here for, to try and make sure that we getthrough what is a very difficult economic time, try to recog-nize theimportance of the residential construction sector and make sure that wekeep trades-people working."
Mr. Holley said more than 20,000 people work in the residentialconstruction industry across the province, while new housing accountsfor more than $800 million in annual revenue.
A Canada Mortgage and Housing Corp. report released this week saidhousing starts, which include apartment buildings, were down close to 30per cent in the province during the spring and early summer. In Halifax,the decline was 44 per cent.
Housing sales, provincewide, were also down by 14.5 per cent whencompared to the same peri-od last year.
More information is available at www.getyourrebate.ca<http://www.getyourrebate.ca> , or by calling 424-5200 in the Halifaxre-gion or toll-free 1-800-670-4357.
(djackson@herald.ca <mailto:djackson@herald.ca> )
By DAVID JACKSON Provincial ReporterThu. Aug 13 - 6:12 AM
Home builders and homebuyers stand to benefit from a new tax break,Premier Darrell Dexter said Wednesday.
Buyers of newly constructed homes can now apply for a 50 per cent rebateon the provincial portion of the harmonized sales tax.
It's a program the Nova Scotia Home Builders' Association suggested tothe three major political parties before the spring election.
The NDP put the program in its platform, but with a start date of May 1.The government has changed it to Jan. 1, at the association's urging. Amaximum of 1,500 rebates will be offered.
To qualify, buyers of new homes must have a municipal building permitdated on or after Jan. 1, 2009, and before April 1, 2010. The home mustbe the primary residence and construction has to be completed betweenJan. 1, 2009, and March 31, 2010, or the purchase closed by March 31,2010.
Cottages and income properties don't qualify.
Mr. Dexter said the government changed the start date because theassociation was concerned that homes started between January and Maymight not have sold because the tax break came later in the year.
"They indicated that they had been working through the winter, trying tokeep people employed, so . . . there were a large number of buildingpermits between Jan. 1 and the May 1 date. The result of that, of course. . . potentially, would have been to strand that inventory," Mr.Dex-ter said.
Speaking at a Dartmouth townhouse construction site, Mr. Dexter saidthere were about 600 permits issued in the province between January andMay, although he didn't know how many homes were under construction.Opposition leaders said the tax incentive sounds more like a reward.
"I don't see it stimulating any activity that otherwise wouldn't havehappened," Liberal Leader Stephen McNeil said.
Mr. McNeil also said he is skeptical whether a $7,000 benefit will beenough to entice people making a $200,000 or $300,000 purchase. And hewondered whether home builders would increase their prices, negating thebenefit of the tax break to the buyer.
Mr. Dexter said buyers will negotiate their prices, and he thinkscompetition will take care of Mr. McNeil's concern.
"There are a lot of companies out there that are really looking to getwork, so I expect there to be a very competitive market, and that thisrebate will ultimately benefit those who are intended to benefit," hesaid.
Interim Tory leader Karen Casey said people now looking at buying a newhome may be concerned that the 1,500 rebates will be gone by the timethey apply.
Service Nova Scotia Minister Ramona Jennex said at the news conferencethat the website www.getyourrebate.ca <http://www.getyourrebate.ca>will track the number of applicants and rebates.
Ms. Casey said the original intent of the program - to spur economicactivity and keep tradespeople working - was good, but that doesn't seemto be happening.
"I consider this now a reward, rather than an incentive," she said.
Andrew Holley, president of the home builders association, said he wouldhave preferred the qualifying date go back to October, but he was stillpleased with the new program.
"We didn't get everything that we wanted, but it was a good compromise,"Mr. Holley said.
Mr. Dexter said the NDP did its own due diligence on the proposal anddecided the province could do it.
The province would forgo $10.5million if the maximum number of peoplegets the top rebate.
The maximum - $7,000 - kicks in for homes costing $175,000 or more.
"I don't think there's anything wrong with listening to the stakeholderswho are involved in the industry, and thereby turn-ing the wheels of theeconomy," Mr. Dexter said.
"That's really what we're here for, to try and make sure that we getthrough what is a very difficult economic time, try to recog-nize theimportance of the residential construction sector and make sure that wekeep trades-people working."
Mr. Holley said more than 20,000 people work in the residentialconstruction industry across the province, while new housing accountsfor more than $800 million in annual revenue.
A Canada Mortgage and Housing Corp. report released this week saidhousing starts, which include apartment buildings, were down close to 30per cent in the province during the spring and early summer. In Halifax,the decline was 44 per cent.
Housing sales, provincewide, were also down by 14.5 per cent whencompared to the same peri-od last year.
More information is available at www.getyourrebate.ca<http://www.getyourrebate.ca> , or by calling 424-5200 in the Halifaxre-gion or toll-free 1-800-670-4357.
(djackson@herald.ca <mailto:djackson@herald.ca> )
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