Old Grace Housing Co-operative pays the federal goods and services tax on all appropriate goods and services. Municipalities are allowed to claim a full rebate on their GST payments from the federal government. Canada Revenue Agency grants municipal status to housing co-operatives that have rent-geared-to-income units. Old Grace has been granted such a designation for its 13 rent supplement units. As a result, OGHC can claim a rebate of 20.3 percent of the money that it pays in GST. (13 of 64 units is 20.3.) Our property manager files for these claims on OGHC’s behalf twice a year. The rebate does not show up in the operating budget but appears as a negative liability in the consolidated balance sheet.
