By D. Wallace, Guest Contributor
This is an update to my February posting titled “Are Residential Rents Exempt from HST?” Basically, tenants were in the dark as to whether and/or how rents were going to be affected by the HST.
It appears that some tenants have their answer. Our premier, the Honourable Mr. McGuinty made the announcement on April 12th “HST will only be factored into rents through any rises in the Consumer Price Index, which is used to calculate annual rental increases.”
Unfortunately, other than this press announcement, there is no more information on any of the relevant web sites concerning rents and HST. There also doesn’t appear to be any information concerning tenants who are paying their utilities separate from the rent.
It seems to me that Queens Park is of the opinion that the personal tax cuts and rebates that Ontario citizens will be receiving are enough to offset any extra charges that we might incur. On this web site there is a calculator, whereby one can ascertain the ongoing tax relief a person will receive: http://helpsme.com/tools/free-gst-hst-pst-sales-tax-calculator-canada
Many renters realised that one way or another landlords would need to recover the extra HST costs. As Michael Prue, MPP East York, stated in the house, ”everyone knows rents will increase”. It was disingenuous of the Ontario government to place residential rents on the HST exempt list. At least the government has now clarified that the HST will be factored into the Consumer Price Index when the annual guideline increase is calculated and extra energy costs will be factored in over time. Also if the market allows, landlords will also be able to recoup their costs in rents they set for new tenants, ministry officials said.
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NOTE: Check this link for details of the list of HST exemptions:
http://news.ontario.ca/mof/en/2009/11/ontario-announces-new-hst-exemptions.html
East York Tenants Group 
Are you suggesting that it is OK for new tenants to carry the burden of the HST? Whether there is HST or not, all “new tenants” can expect to pay a monthly rent that is way way above both the annual and also the above guideline increase. It is called ‘vacancy decontrol’ and gives the landlord a great opportunity to gouge tenants. And this is allowed under the Residential Tenancies Act!!! Some new tenants have to pay above 20% or more in rent than what existing tenants pays for an identical unit. This is whether of not the landlord has done major repairs to the unit. Is the rationale for ‘vacancy decontrol’ is to fill the landlords’ pockets in an underhand way? Allowing landlords to charge what the ‘market will bear’ is just another weapon for the landlord to bleed tenants dry and fob off HST cost. It is the ‘new tenants’ who are the victims. Dont’ you know that many landlords were ‘given’ taxpayers dollars as well as all kinds of financial incentives fomr different levels of govt to construct many apartment complexes. Landlords did not use ‘their money’ to build the apartments. Many of the comments at your site raise this issue. For heavens sake…these were not loans but grants of our tax dollars! What kind of lopsided thinking is this?
How can I become a member of First Nations? Did you know that First Nations just won a victory here in Ontario that will allow them to keep their ‘point of sale’ exemption from that tax grab. And now the BC First Nations also want the same! Hope they are successful too. Check these links for more….
Ontario’s status Indians to be HST exempt http://www.thestar.com/news/ontario/hst/article/824262–ontario-s-status-indians-to-be-hst-exempt
B.C. First Nations want HST exemption
http://finance.sympatico.ca/home/bc_first_nations_want_hst_exemption/3fbd9845
Good for them but I want the same exemption too from this unfair tax grab.
HST costs will have to be factored in for shared utilities such as hydro & electricity used by the landlord to maintain the premises….. hallways, underground garages, laundry facilities, the grounds etc.. Don’t these come under operational expenditures? And do you think for one minute landlords will deduct the HST cost from these items when fudging around with the annual or above guildline increases! Not on your life. Michael Prue was right all along. The reality is that the cost of doing business will be shifted to tenants and the landlords will continue to reap profits. How on earth could the McGuinty govt not have figured that out? Are there that many idiots with the right connections working in government! Or maybe there is something more sinister…..the govt were fully aware that the HST had to be factored in because of the CPI thereby eventually affecting rents and that’s the reason for the HST rebate … bribe us with our own money before they start squeezing us dry. And where is Mr. Hudak on all this??