TORONTO - The provincial budget announced plans to harmonize the provincial and federal sales taxes starting July 1, 2010.

The move will extend the PST to a range of goods and services, including home heating fuel, phone bills and gasoline. But some goods will still be exempt.

Here is the list:

  • children's clothing and footwear
  • children's car seats and booster seats
  • diapers
  • feminine hygiene products
  • books

The combined tax will also extend the provincial sales tax to new homes but buyers of homes under $400,000 would get a rebate to offset the tax.

Buyers of homes priced between $400,000 and $500,000 would be eligible for a reduced rebate.