PST Transitional New Housing Rebate

Newly constructed or substantially renovated homes completed in full or in part prior to July 2010 have social service tax (PST) embedded in the price of the homes since building materials used in the construction of homes were subject to PST.

For new homes that are subject to the provincial component of the HST after June 2010, a PST Transitional New Housing Rebate is available to provide relief in respect of the PST embedded in the price of the home. The application for this rebate must be submitted to the Canada Revenue Agency (CRA). However, as a condition for obtaining the rebate, you are required to obtain a Letter of Good Standing from the British Columbia Ministry of Finance.

Requesting a Letter of Good Standing

A Letter of Good Standing would be issued where the builder has no outstanding provincial tax debts.

Once a Letter of Good Standing is issued, the builder would attach it to their first PST Transitional New Housing Rebate application submitted to the CRA.

Subsequent PST Transitional New Housing Rebate applications submitted to the CRA by the builder would be processed based on the Letter of Good Standing attached to the first application, so long as that Letter of Good Standing remains valid.

Requests for a Letter of Good Standing should be submitted using an Application for Letter of Good Standing (FIN 305). The completed application can be sent to one of the following:

Fax:250 356-2195

E-mail: CTBTaxQuestions@gov.bc.ca

If your business has no outstanding provincial tax debts, you should receive your Letter of Good Standing within 2-3 weeks. The Letter of Good Standing is good for one year. However, in the event that any debt is incurred with the province by a business or individual who has received a Letter of Good Standing, a letter of revocation may be issued by the province to both the party who requested the original Letter of Good Standing, and the CRA. You will be required to clear all tax debts with the British Columbia Ministry of Finance before you can reapply for another letter.

The PST Transitional New Housing Rebate is administered by the CRA. More information on the PST Transitional New Housing Rebate is available on the CRA website at http://www.cra-arc.gc.ca/gncy/hrmnztn/menu-eng.html