2010 HST

Announced in the 2009 Ontario Budget, the Provincial Sales Tax (PST) will be replaced with a more modern, value-added tax that will be combined with the federal Goods and Services Tax (GST) to create a Harmonized Sales Tax (HST) for Ontario, effective July 1, 2010. The provincial portion of the HST will be eight per cent and the federal portion will be five per cent, for a combined HST rate of 13 per cent. The HST will not be charged on the following items that are currently not subject to PST: Basic groceries Prescription drugs Certain medical devices Child care Residential rents Municipal public transit Most health and education services Legal aid Most financial services Tutoring Music lessons Consumers will not have to pay the provincial portion of the HST for: Qualifying prepared food and beverages sold for $4.00 or less Print newspapers Children's clothing and footwear Children's car seats and car booster seats Diapers Feminine hygiene products Books (including audio books) 83 per cent of consumer purchases will not see a new tax. (ref:  www.rev.gov.on.ca/en/taxchange/consumers.html)  How To Become HST Exempt On Your Prepaid Funeral Arrangements: Although their are many items that will not be charged the HST, funeral services will be.  Currently funeral homes are only billing for the 5% GST for their services.  At the Henry Walser Funeral Home, you must have entered into a contract prior to July 1, 2010 to be HST exempt.  You may choose to pay your costs up front in full or through a time payment that proves you are going to prepay your funeral with good faith and within a reasonable time frame.  Either of these will exempt you from paying HST at the time of death.  Please contact us for more information or to book an appointment to meet with one of our Knowledgeable funereal directors.