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For The Record

HST AND MUNICIPALITIES

Sept. 29, 2009
Ministry of Finance

VICTORIA – The Province proposes to harmonize its provincial sales tax (PST) with the federal Goods and Services Tax (GST), resulting in a Harmonized Sales Tax (HST) of 12 per cent as of July 1, 2010.

Here are some facts about the HST and municipalities in B.C.:

  • Overall, local governments will pay no additional sales tax following harmonization on July 1, 2010.
  • Local governments will be rebated for their HST costs, which will be administered by the Canada Revenue Agency.
  • Local governments already pay PST on a number of goods. This new rebate will offset new HST costs by making up the difference between PST already paid and the incremental new costs of HST with a 75 per cent rebate of the provincial portion of the HST.
  • On average, this rebate will ensure that no additional tax will be paid by municipalities due to harmonization.
  • Details around this rebate are clearly explained on page 82 of the Budget and Fiscal Plan.
  • Government is also extending the two per cent hotel room tax until June 30, 2011 to provide time to consult with all stakeholders regarding the future of this program and tourism marketing in general.
  • This addresses concerns from affected municipalities, which have also indicated the importance of the two per cent hotel room tax to marketing programs and expressed concerns about its future in light of the proposed implementation of the HST.
  • Tax reform is an essential step to encourage new investment, spur growth, create jobs in local communities, and make B.C. more productive and competitive through the economic recovery and into the future.
  • Over time, the HST will generate long-term economic growth that will generate more revenue to sustain and improve crucial public services.

Letters to the Editor

Oct. 24, 2009
Letter to the Editor:
Tax Reform Essential to Economic Recovery
Colin Hansen,
Minister of Finance
Submitted: Burnaby Now
Status: Not published
Let me set the record straight on how the HST will affect B.C. municipalities. A recent article suggested municipalities face increased costs due to the HST, and questions the Province’s reasons for reforming British Columbia’s sales tax system. [Read More]

Oct. 23, 2009
Letter to the Editor
RED TAPE MOUNTAIN SHRINKS; B.C. LIBERALS CUT 151,OOO REGULATIONS
Iain Black
Minister of Small Business, Technology and Economic Development
Submitted: Nanaimo Daily News
Status: Published
The B.C. government has eliminated over 151,000 regulations. That’s a red tape reduction of over 42 per cent since 2001. [Read More]