CRA indicates that a cooperative that provided trailer park sites together with sewerage and water services was likely making a single supply of exempt real estate

Following the refusal of the landowner of a mobile home park to upgrade the system for handling wastewater, the residents created a cooperative, which acquired the mobile home park, built an authorized sewerage system and, in exchange for rent, supplied the residents on a bundled-together basis with a site in the mobile home park, along with sewerage services, unbottled water and management services.

CRA indicated that it “seems reasonable in the circumstances” that this would be a single supply of the sites that was exempted under ETA Sched. V, Pt. I, s. 7(b), respecting the rental of sites in a “residential trailer park.” Although not mentioned, this single-supply result is strongly supported by Hidden Valley.

CRA went on to indicate that, if there were a separate supply of the sewerage services, they would not be exempted under Sched. V, Pt. VI, s. 22 or 21, given that it was a private concern that would be making such supplies. However, this private concern issue did not preclude the exemption in Sched. V, Pt. VI, s. 23 for supplies of unbottled water from being available – and, in fact, the cooperative could be designated as a municipality for purposes of obtaining rebates for its water –delivery GST/HST costs given that “supplies of unbottled water are considered to be standard municipal services.”

Neal Armstrong. Summaries of 7 August 2019 GST/HST Interpretation 197932 under ETA Sched. V, Pt. I, s. 7(b), Sched. V, Pt. VI, s. 22, s. 21 and s. 23, and ETA s. 259(1) – municipality.