From homes to haircuts, prices are set to rise for residents of Ontario and B.C. On July 1, as the harmonized sales tax takes effect in both provinces.

With a week until the deadline, there's still a little time left for buyers to beat the HST.

Cam Boyd and Melissa Rorison of Toronto decided to sell their home and buy a new one before the HST deadline. Rorison told CTV News "We originally weren't planning to do it this soon, but we thought with the HST coming we wanted to do it to try and save some money."

According to a survey by Ratesupermarket.ca the average cost of buying and selling a home will rise about $1,560 due to the HST being added to real estate commissions, legal fees, property surveys and moving costs.

Kelvin Mangaroo is the founder of the website that compares mortgage rates across the country. He says "I don't think many people are aware of what the effects will be. It is going to be more costly now to buy and sell a home."

The survey also estimates that due to an increase in heating and cooling costs, renovations, maintenance and other services home ownership will costs another $504 if you own a condo and $580 if you own a house.

There are some other businesses that have been thriving as consumers try to beat the HST.

HOW YOU CAN STILL BEAT THE HST

  • Buying real estate
  • Funeral planning
  • Home renovating
  • Landscaping
  • Buying a used car privately
  • Getting a haircut or spa treatment

Key Points:

  • When the HST takes effect in B.C. and Ontario on July 1, consumers will pay an extra 7 per cent and 8 per cent respectively for certain services.
  • Business has been booming at funeral homes as thrifty planners scramble to lock in funeral pre-arrangements before the HST
  • Many services, including housekeeping, dry cleaning and landscaping services, have ongoing "beat the HST" promotions
  • Many consumers have also been flocking to salons for haircuts and spa treatments
  • Important note: The deadline for prepayment on most services and items delivered after July 1 passed at the beginning of May.
  • So it's too late to beat the HST on big ticket items like gym memberships and airplane tickets if they are being used after July 1.
  • Basics such as groceries, most health and education services, prescription drugs and childcare will not be affected. Gas will be taxed in Ontario but not in B.C.

Weblinks

Ontario – What's Taxable Under the HST and What's Not? (Download the PDF)

B.C. – What's Taxable Under the HST and What's Not? Link

A few things that will be taxable under HST in Ontario

  • Gasoline
  • Dry Cleaning Services
  • Electricity and Heating & Home Service Calls
  • Hotel Rooms and Taxis
  • Campsites
  • Home Renovations
  • Magazine Subscriptions
  • Private Resale of Cars
  • New Homes Over $400,000 and real estate commissions
  • Massage Therapy services
  • Gym membership fees, fitness trainers and sports lessons
  • Tickets for live theatre with less than 3200 seats
  • Hockey rink and hall rental fees
  • Hair and beauty services
  • Funeral services
  • Legal fees
  • Domestic air, rail and bus travel originating in Ontario
  • Cigarettes, tobacco and nicotine replacement products
  • Hunting and fishing licenses
  • The federal government has agreed to Ontario's request to give First Nations a point-of-sale exemption on the HST

A few things that will be taxable under HST in British Columbia

  • Newspapers and magazines
  • Home renovation and repair services
  • First aid kits
  • Smoke detectors valued less than $250 for residential use
  • Shoe repair and tailoring services
  • Dry cleaning
  • Used adult clothing purchased for less than $100
  • Snack foods and restaurant meals
  • Catering and event planning services
  • Basic cable television and local residential phone services
  • Landscaping, house cleaning and private snow removal
  • Hotel rooms and taxis
  • Camping sites
  • Domestic air, rail and bus travel originating in B.C.
  • Motor vehicle parking
  • New homes over $525,000
  • Real estate commissions

Other Provinces

  • The Maritime HST was introduced in three Maritime provinces in 1997 including Newfoundland/Labrador, Nova Scotia and New Brunswick
  • The Maritime HST reduced the combined tax rate upon introduction. The Ontario and B.C. HST do not