When the HST comes into effect on July 1, there are a lot of things that will start to cost more. However, the provincial government has also come up with a list of exemptions.
Your electrical and heating bill will go up, as will home repair, such as plumbing and electrical work.
Exemptions include basic groceries, prescription drugs and condo fees. Other items will be taxed at five per cent - not 13, like children's clothing and prepared foods under $4.
The Globe and Mail recently published a full list of exemptions, which include:
- Basic groceries
- Municipal water
- Municipal public transit
- Some international travel originating in Ontario
- Auto insurance
- Previously occupied homes
- Most medical services
- Prescription drugs
- Music lessons
- Condo fees
- Residential rents
- Child-care services
- Legal aid
- Mortgage interest
- Most financial services
Also, these items will only be subject to the five per cent federal portion of the HST:
- Books and printed newspapers
- Prepared foods under $4
- Children's clothing
- Children's footwear
- Child car seats and booster seats
- Diapers
- Feminine hygiene products
Some of the items that will be subject to the new harmonized sales tax include:
- Alcoholic beverages, tobacco products, vitamins
- Real-estate commissions; residential electricity and heating; landscaping, lawn care, snow removal and house cleaning; repair or maintenance services (e.g. plumber, electrician); Internet access services
- Magazines by subscription, private resale of vehicles, gasoline/diesel, new homes over $400,000
- Dry cleaning, massage therapy, funeral services, hairstylist or barber, esthetician services, accounting services, legal services
- Fitness trainer, gym and athletic memberships, fitness lessons, green fees for golf, tickets for live theatre (venues of 3,200 seats or less)
- Hotel rooms, taxis, camping sites, domestic air, rail and bus travel originating in province
