Ontario Budget 2010
Together CCI (Toronto) and ACMO are pleased to provide you with an update on how the 2010 Ontario Provincial Budget may affect the Condominium sector.
There were no new tax credits or rebates proposed to help offset condo fees that are anticipated to rise due to the HST. However, the government did provide new tax credits as part of the budget announcement. The government is replacing the combined property and sales tax credits with two new credits:
- Ontario Sales Tax Credit – aimed at providing $1 billion in sales tax relief to approximately 3.1 million families starting in August 2010;
- Ontario Energy and Property Tax Credit – the government will introduce legislation this year to convert the Ontario Property Tax Credit to the Ontario Energy and Property Tax Credit with the intent of providing $1.2 billion in annual energy and property tax relief to low-middle income individuals and families.
The government also announced that it would move forward with an electronic land registry. In addition a new Electronic Land Registration Service Commissioner will also be established for dispute resolution issues. CCI (Toronto) and ACMO will monitor this project during the design process to determine if there are features which can benefit the Condominium sector.
As announced in February, the provincial government has confirmed that it will be giving condominium corporations that were created before May 5th, 2001 more breathing room when it comes to their reserve funds and the requirement to "top them up". This will help mitigate the impact of the HST on Reserve Fund balances.
CCI (Toronto) and ACMO are continuing with their efforts on behalf of the condominium industry to obtain solutions to the serious and unique problems facing condominium owners impacted by the HST and to have the government open up the legislation for review and changes. We are continuing our constructive dialogue with the government on these issues, and in particular with the Hon. Sophia Aggelonitis, Minister of Consumer Services.
In addition, CCI (Toronto) and ACMO will begin to engage all political parties in the lead up to the 2011 Ontario Provincial election to ensure condominium industry issues are front and centre in party platforms.
March 26, 2010
