My wife and I spent part of Saturday finding out how much replacing the windows on our house is going to cost (the short answer is HOLY CRAP!), however, I am sure I will have many interesting and poignant commentaries on this issue, but that is not what I am writing about today.
As we finished our discussions with the representative at Home Depot, the comment was made that we most likely would not hear from anyone for at least a week due to the “boom” right now in building in Ottawa (at least in the area of repairing and upgrading existing homes).
At first I took this simply as a “sales pitch” about how we should act soon, but then I looked over and saw something that made me think the advice was valid:
“… all booked before June 30th will not be subject to the HST…”
Then I understood the comment. It seems the impending HST is causing a “bubble” in the construction industry in Ontario (much like the Federal Home Upgrade tax credit did last year). It is interesting to see how government programs which are designed to increase Government revenue and allegedly make retailers jobs simpler can as a secondary effect cause consumers to spend money sooner.
My only question is, is this “rush” valid? Did the Provincial Sales Tax get charged for installing windows? Were windows exempt from these taxes? What about the old “cash discount” that has always existed in the construction industry?
All comments appreciated, to help me understand this “bubble”.