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While taxes on landscaping materials such as sod remain unchanged, residents in Ontario and British Columbia will see the Harmonized Sales Tax (HST) applied to maintenance services such as landscaping and lawn care.

Ontario and British Columbia residents can expect to pay more when building or servicing their backyard living spaces when the harmonized sales tax (HST) comes into effect on July 1.

The HST combines the federal GST (five per cent) with each provincial tax to create a harmonized tax rate of 13 per cent in Ontario and 12 per cent in British Columbia.

Both provinces will see the HST applied to residential service calls (e.g. electrician, plumber or carpenter), as well as maintenance services (e.g. landscaping, lawn care or private snow removal). Home renovation costs in both provinces will also be subject to the HST, while items such as cleaning products, landscaping materials (e.g. sod, seed and plants), patio furniture, barbecues, lawnmowers, outdoor play equipment (e.g. swing sets, sandboxes and slides) and building materials (e.g. lumber and concrete mix) will be unaffected. Ontario residents will also see taxes increase on costs for electricity and heating, while British Columbia energy taxes will actually decrease thanks to the provincially administered Residential Energy Credit and Rebate Program.

The Ministry of Revenue says the new system will eliminate hidden taxes and help businesses by refunding sales tax paid on most business inputs. In turn, these refunds should generate lower prices for many consumer purchases, reduce business costs and lead to improved competitiveness, increased business investment, more jobs and higher incomes.

To learn more about what is and what is not taxable under the HST in Ontario, visit http://www.rev.gov.on.ca/en/taxchange/pdf/taxable.pdf ; in British Columbia, visit http://hst.blog.gov.bc.ca/wp-content/uploads/2010/05/GST_PST_HST_List_v04.pdf .