New HST exempted from pre-paid funeral and cemetery services
Posted Feb 4, 2010 By EMC News
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Tweet ThisEMC News - It's said there are only two certainties in life - death and taxes.
The Ontario government has announced that the new Harmonized Sales Tax (HST) to be implemented on July 1, 2010 will not apply to funeral and cemetery contracts signed and pre-paid prior to the implementation date. This exemption allows consumers who sign and pre-pay for a funeral or cemetery service before July 1, 2010, to save eight per cent tax.
"For years, we've been advising Leeds and Grenville families about the financial, practical and emotional reasons for planning their funerals ahead of the time of need," said Brent Irvine, owner of Irvine Funeral Home and Chapel. "With the added incentive of hundreds of dollars in tax savings, it's the perfect time to contact us to learn more about funeral or cemetery pre-preplanning."
Today, funeral services are subject to the five per cent Goods and Services Tax. For example, consumers who spend $5,000 for funeral services currently pay $250 in taxes. When the HST comes into effect later this year, it will add $400 to the cost of a $5,000 funeral, bringing the total taxes to $650. In many cases, couples preplan their funerals at the same time, so the increased cost in such a case is $1,300. The HST will also impact other funeral related purchases such as cemetery and cremation costs.
Increasingly, Canadians are discovering the value of funeral and cemetery pre-planning.
Last year in the province of Ontario, according to statistics obtained from "Ontario Funeral Sector, Quick Facts, 2008," published by the Board of Funeral Services:
- 87,855 people died,
- 19,276 pre-paid contracts were provided,
- 21.9 per cent of funeral services were funded with pre-paid funeral contracts,
- 30,024 new pre-paid funeral contracts were signed.
"We plan ahead for many things in life, including careers, weddings, starting a family, our children's education and our retirement," said Irvine. "It is only natural to plan our funerals, too. With the chance to save hundreds of dollars by finalizing funeral contracts before the HST is launched later this year, pre-planning is more attractive than ever before."
For further information, contact your local funeral director.
