Ontario scraps its portion of HST on purpose built rentals

Ontario is scrapping its portion of the harmonized sales tax on eligible purpose-built rental housing in an effort to spur construction.

The province has been saying it would remove its 8% portion of the tax if the federal government dropped the 5% goods and services tax on rental housing builds.

The federal government did that last month.

Ontario Finance Minister Peter Bethlenfalvy said the changes will apply to new rental housing units such as apartment buildings, student housing and senior residences built for long-term care rental accommodation.

The rebates apply to projects that began construction from this past September until Dec. 31, 2030.

To qualify, new residential units must be in buildings with a minimum of four private apartment units or 10 private rooms, and be in a building where 90% of units are long-term rentals.

The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.