Tony Gioventu
Province
Q: Our property manager has advised us that effective Jan. 1, 2010, we must start paying the Harmonized Sales Tax on our strata fees. In addition, he has sent a notice to each owner in the building advising that it will cost them $50 per unit to create a statement for our claims for the Home Renovation Tax Credit. Our council thought we would not be paying HST on strata fees, and our owners are protesting the charge for the HRTC statements. Please clarify.
— Timber Villas, North Vancouver
A: It will be a while until we know the real impact of the HST on strata corporations. The government has indicated there will be no change on strata fees for residential units. Residential strata units do not pay GST and will not pay HST on their strata fees. Commercial units in many strata corporations do pay GST and will likely pay HST.
Until the legislation is actually tabled for debate, however, and is passed into law no one knows for sure what will happen.
The projected date for the HST, once it comes into law, is July 1, 2010. The effects on a strata budget will depend on the types of services that you currently pay for that incur only GST, and those that are included in the legislation. They will likely become HST items.
As for the Home Renovation Tax Credit, the obligation to provide the statement for strata lot owners is that of the strata corporation.
As a result, the strata agent/strata corporation is not permitted to charge or levy the owners for the statement.
Your strata-agency agreement may not make a provision for this service, but if requested and agreed to between the agent and the corporation, the agent may charge the strata corporation a fee to provide the statements to the owners. That fee cannot be charged to the owners and would be an operating expense. Review your contract and contact your strata agent to negotiate the service.
Each owner is given a statement showing their share of the annual eligible costs either from a special levy or from reserve funds. The amounts shown per strata lot are based on unit entitlement. For more information on the HRTC, go to the Condominium Home Owners’ Association website at choa.bc.ca under legislation alerts and updates.
Tony Gioventu is executive director of the Condominium Home Owners’ Association. Send questions to him c/o At Home, e-mail tony@choa. bc.ca.
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