What does the HST mean for me?

The HST will add about $7,500 to a single-family home currently priced at $565,000 in Maple Ridge, about an hour commute from downtown Vancouver, according to a calculation by a chartered accountant who works as a comptroller for a homebuilder's firm. The tax on real estate and inspection fees would be additional costs. The 2,300-square-foot home with three bedrooms and a double garage is in a neighbourhood of nurses, firefighters, police officers and teachers.

Taxes and fees will account for $83,000 of the house price, said Peter Simpson, chief executive officer of the Greater Vancouver Home Builders Association. That includes municipal fees, development charges, school site acquisition fee, regional levies for sewer and water, and permit fees.

Mr. Simpson says he has not spoken to one single builder that welcomes any part of this new tax. "It's ludicrous," he says. He would like builders to advertise houses like automobile dealerships advertise their vehicles. The price in big print would have an asterisk pointing to tiny print saying the price does not reflect taxes, fees and closing charges. A home selling for $572,500 could be advertised at $489,500 with an asterisk pointing to applicable taxes and fees, he said.

The new tax does not apply to the resale of homes. But Mr. Simpson anticipates the 12-per-cent HST will have an impact on the market for home renovations in older houses. "People are already paying cash to avoid the GST," he said. "This is going to push the economy further underground."

Yatin Shah, married and the father of two teenagers, is not too troubled by the prospect of paying 7 per cent more on goods and services. Mr. Shah, 42, said he anticipates the new tax could be costly for the consumer, but he expected to be paying more taxes. He has watched governments around the world increase their spending to keep their economies rolling. The only way to pay for government bailouts is to increase taxes, he said. Lots of people are crying about the HST.

"We have to accept it, no choice. Life goes on," he said.

Mr. Shah is a realtor and mortgage broker who also owns some rental properties. His wife runs a daycare. His sons, Sunny, 18, and Rocky, 14, live at home.

He sifts through his bills, including some associated with his work. He offers a list of expenses, based on media reports of the new tax, that will cost him about $385 more each month once the HST is collected. Here's the list, with his monthly expenses: groceries ($1,400), restaurant bills ($400 to $500), haircuts, pedicures, etc. ($180), newspapers ($45), movie rentals ($50 to $60), gardening services ($250 to $300), cable and Internet ($150), two car leases ($895), car washes ($60), professional memberships ($505), clothing ($130), website maintenance ($70), dry cleaning ($150), gym membership ($50), family cell phones ($200), and phone bill ($125).

He figures accounting fees and carpet cleaning - both expenses that come up only once a year - will cost around $200 more.

Matt Mills, a single, self-employed 39-year old man living in North Vancouver, sees no benefit to the HST. He is in a long distance relationship and travels often. The new tax will mean a 7-per-cent increase on every ticket he buys.

He estimates he will pay $50 more each month just for airline flights. He figures he will get hit just as quickly staying home. He checks his monthly bills: cable ($38.95), hydro ($25), movies ($25), groceries ($120), restaurants ($300), haircut ($25), wellness activities such as acupuncture and massage ($135) and strata fees ($18). That works out to another $50 more in taxes each month. He calculates costs associated with occasional expenses, such as accounting fees ($3,600) and vehicle repairs ($765). HST could cost him on average around $125 more each month.

Mr. Mills, who moved to B.C. from Alberta, lives in a two-storey townhouse on the North Shore. He works in the financial sector. The tax is not expected to affect his business, but the impact on his life outside work might be enough to push him to consider moving elsewhere. He estimated he is already paying a 15-per-cent premium to live on the West Coast rather than Calgary. At some point, he mused, it could be just too costly to stay.

Leaving B.C. will also cost more, he noted. "Real-estate commissions will also be subject to an increase. That will affect the seller's net profit. So if I did decide to vote with my wallet and move to Alberta, selling this place would be the final twist of the knife. That would mean an additional $1,700 in tax on real-estate commissions."