Should Student Residences Be Exempt from GST?
Official title: Consultation on Removing the GST on Student Residences
The federal government wants to remove GST from new student housing built by universities and colleges. Right now, student residences don't qualify for the rental housing GST exemption because students typically stay short-term. This change would make it cheaper for schools to build dorms, potentially easing the student housing crunch.
Why This Matters
Student or have kids heading to college? Campus housing is scarce and expensive. When students can't find dorms, they compete with locals for apartments, driving up rents for everyone. More student housing means less pressure on the rental market in university towns.
What Could Change
Not-for-profit universities, public colleges, and school authorities would pay no GST on building new student residences. In Ontario, Nova Scotia, Newfoundland and Labrador, and PEI, the provincial portion of HST would also be removed. This could save institutions millions on construction costs.
Key Issues
- Should the GST exemption for rental housing be extended to student residences?
- Are the proposed legislative and regulatory amendments appropriate for implementing this change?