HST

[Frank]

Not sure if I previously posted this information, or simply alluded to it, at any rate I came across the ruling that I got from Rev. Can. and will quote it below verbatum...    You can also refer to GST Policy Statement P-198 Unpaid Municipal Taxes and Redemption by the Previous Owner (which resulted from a court case in Quebec).

"It is the Agency's position that under subsection 183(10), a sale by a municipality of a previous owner's property is a deemed seizure, or repossession, and the municipality is the deemed supplier.

As a result, puruant to subsection 183(1) the municipality is deemed to have purchased the property, and the previous owner is deemed to have sold the property for nil consideration at the time of the auction sale.

Accordingly, as the auction sale is a supply for GST purposes, and as the municipality is the deemed supplier, the sale by the municipality will be taxable unless the supply is exempt un der the provisions of Schedule V of the ETA.

On May 14, 2004 the ETa was amended and municipalities are now entitled to a 100% rebate of GST and the federal portion of HST.  As part of the amendments, changes were made to exclude municipalities from the general exemption for supplies of real property made by public service bodies.

As a result, supplies of real property by a municipality that were formerly exempt under section 25 of Part VI of Schedule V are now taxable.

However, supplies of real property made by municipalities for residential use (e.g., a home) may still be exempt under sections 2 of Part I of Schedule V."

[Dave2]

However, supplies of real property made by municipalities for residential use (e.g., a home) may still be exempt under sections 2 of Part I of Schedule V."  

One thing of general note for those people who like big properties like the Bossio Madoc property we were all dreaming of at the beginning of the year. Residential ruling exemption is limited in my personal experience to 1 hectare = 2.5 acres of land surrounding the house.  

Needless to say those derilect houses some of us like to buy are in pristine condition when it comes to HST valuation for big properties we all dream of.  

[Ronster]

I was the successful bidder on a 98 acre property in Huntsville in 2010, however the G.S.T. was not added by the municipality in that instance.