TORONTO - Premier Dalton McGuinty says the 1.3 million families that rent their homes or apartments will be protected from rent increases due to the harmonized sales tax that starts July 1.
McGuinty says the province will close a loophole that would have let landlords apply for above-guideline rent increases based on the 13 per cent tax on utilities.
He says the government will protect renters from HST-releated increases due to energy costs, but will also be fair to landlords.
The landlords will be able to apply for rent hikes to offset any increase the HST creates in the annual consumer price index, which McGuinty predicts will be "very modest."
However McGuinty says there are no other changes planned, such as protecting condo owners from the impact of the HST.
Some landlords have warned that the HST would boost residential rents by 2.5 to 3 per cent.
In addition to utility costs, the HST will apply to several previously tax-exempt costs such as maintenance, property management and renovation contracts.
Rent remains exempt from sales tax.
