While some financial institutions will process and accept postdated cheques prior to the date, Ontario Ministry representatives are recommending that citizens wait to cash or deposit cheques. Currently the only financial institution confirming the early rejection of processing the HST cheques is TD Financial. According to Ministry spokesperson Scott Blodgett, individuals may run into problems with processing if they attempt to deal with the cheques before the set date.

While Ontario residents receive their last HST transition cheques, B.C. residents continue to get mixed messages from opposing and supporting camps of the system ahead of the upcoming referendum.

The provincial NDP party of B.C. officially launched their anti-HST campaign Tuesday in response to the $5 million campaign released by the B.C. Government. NDP Leader Adrian Nix continues his quest to outlaw the taxation system claiming that “the HST is a massive transfer of the tax burden away from big businesses and onto the back of working and middle class families.”

Former premier Bill Vander Zalm is also continuing his anti-HST campaign going so far as to offer a $1,000 prize for the individual or group to post the best online video promoting the tax elimination.

Business groups and government forums are still occurring throughout the province promoting the HST as a ’smarter’ tax alternative and urging residents to consider the system. As the referendum date nears, recent polls suggest that B.C. residents are split on their decision. And while Ontario residents will not be headed to the polls to determine the fate of their harmonized tax system, the outcome of the provincial election in October is predicted to directly reflect residents’ sentiments on the matter.

According to Clark the changes the party is proposing are “bold” and “smart” modifications that will be made public within the next two weeks. These changes however, may prove to be too little too late.

The opposition party is skeptical that consumers who have been hit with paying an average of $250 more a year because of the tax will be persuaded to vote affirmatively regardless of the changes Clark proposes. According to Clark, these changes will “[...] lighten the load for families” but will have to fall within the provincial jurisdiction.

The federal government has not shown any interest in negotiating the terms of B.C.’s HST until 2012 which leaves Clark in a bit of a quandary over what can be done. Some analysts suggest that Clark start with adding more exemptions to the HST including restaurant meals and haircuts or reducing the overall percentage, while B.C.’s NDP leader Adrian Dix suggests the HST be scrapped altogether. Dix claims that no change to the tax will be able to alter the public’s opinion of a jaded party’s leadership stating that “the Liberal party is out of ideas and out of gas.”

Clark’s efforts may seem last minute to make the HST more palatable but for some it may also be somewhat confusing. A mere few months ago Clark was ready to ditch the tax in favor of reverting back to the PST/GST system even going so far to oust former finance minister Colin Hansen due to his involvement with implementing the HST. Now, Ms. Clark is set on promoting the tax to achieve a favourable outcome in the referendum.

The Independent Panel, town-hall style meetings and promotional materials presented to residents, while seemingly unbiased are sure to have subtext aiming towards the anticipated provincial election; proving the Liberals are seeking to earn more than the public’s vote on the HST.

The report entitled ‘It’s Your Decision’ was prepared by four analysts: Jim Dinning, University of Calgary chancellor (Chair), Professor John Richards from Simon Fraser University, George Morfitt, former Auditor-General, and Tracy Redies, CEO of Coast Capital Savings.

After reviewing approximately 90 submissions from B.C. residents, analyzing a plethora of data and comparing B.C. to other provinces with harmonized sales tax programs, the report was released to the public for consideration.

‘It’s Your Decision’ is written in an easy-to-read format including charts and graphs for analysis based on the data the panel collected. Critics and anti-HST supporters are claiming the panel was already biased going into the study and therefore, the data has been skewed. At first glance however, the summaries and conclusions are neither for or against the B.C. taxation with admissions of advantages and disadvantages of both systems.

In a press release dated May 4, 2011, the panel’s Chair Jim Dinning stated that “the choice B.C. voters face in the upcoming referendum comes down to looking carefully at the implications of each option.”  The panel concluded that returning to the former PST/GST format would not only result in the repayment of the $1.6 billion in federal transition funding but also result in a substantial annual drop in provincial revenues as received from the sales tax in addition to the administrative costs of reinstating the PST. And while this may seem like an attractive prospect for residents who have seen a 12 per cent increase in sales tax on routine items including restaurant meals, hairdressing and professional services, the drop in provincial revenues will play out in other negative ways as predicted by the panel. As seen in other provinces, the panel deduced that B.C. ’s initial inflation will level out and businesses will increase their extension of savings to consumers as a result of competition.

The four analysts concluded that although the HST has taken a toll on various sectors of the economy, in the long run it will increase the number of higher paying jobs, fund much-needed provincial programming and attract investors on a global scale which in turn will assist in continued economic recovery. Dinning and his colleagues were candid in their approach however, admitting that reverting to the former PST/GST system would put more money in consumers’ pockets immediately, though with long-term effects.

Essentially, B.C. residents are left with a choice between a system that, although poorly implemented, has the potential of long-term benefits for the province or a system that will put initial money into their own pockets at the expense of economic growth and provincial programming. Either way, B.C. residents will have to weigh the cost.

A series of meetings throughout the province are scheduled to take place before the referendum via virtual conferencing. Using a teleconferencing technique, all residents in the scheduled region with listed phone numbers will be called the night of the meeting. A moderator on the end of the line will ask the resident if they wish to join the conference to ask questions of the ministers regarding the HST. Due to backlash on the HST, the province is hoping that the series of meetings will help residents in voicing their opinions and concerns regarding the taxation system.

Lekstrom and Falcon are also looking for suggestions on how the tax could be improved. Pro-HST businesses and residents continue to focus on the long-term benefits of the taxation system that include increases to provincial investment, improvements to the economy and consumer confidence.

The independent panel that was formed in January of this year is scheduled to report its findings at the beginning of May; also delayed but as a result of the federal election.

Registered B.C. voters will begin receiving ballots for the referendum on June 13, 2011 to decide the fate of the controversial tax.

Public opinion still remains hostile towards the tax but recent efforts to inform the public of both sides of the issue are in full force to increase awareness and ensure voters make an informed decision.

The Fight HST campaign, organized by Vander Zalm has been actively promoting rallies and protests since last year’s implementation of the HST. Four rallies directly targeted Liberal MLAs who supported the tax in regions throughout the province. Unfortunately, none of the recall petitions were successful in ousting the targeted politicians from their posts. The last effort was made in the Maple Ridge-Mission riding east of Vancouver. Unable to secure the required 40 per cent support for the petition, organizers withdrew the recall application.  Other ridings that were targeted included: Oak Bay-Gordon Head, Comox and Kamloops-North Thompson.

Although the recalls were unsuccessful, Vander Zalm’s Fight HST campaign is directly responsible for the calling of the referendum after the group successfully collected more than 500,000 signatures.

The report from the BC government in support of the HST is said to surface at the beginning of May published by an independent panel. The original deadline for the release of the report was extended to accommodate the recent federal election call.

Meanwhile, the fourth round of HST rebate cheques have made their way to low-income families and individuals in BC. And as the anticipated date for the HST referendum nears closer, residents will soon be receiving ballots for the June 24 vote. Ballots are scheduled to be mailed mid-June allowing residents to ponder their decision and mail in their responses.

In addition to ballots, residents can expect a voter’s guide in the mail to help in the decision process. The government has budgeted $1.7 million for a public information campaign educating voters on both sides of the HST issue. Attorney General Barry Penner has appointed the Honourable Stephen Owen to oversee the distribution of the “[...]comprehensive voters’ guide to every home in the province.” Funding is said to be equally distributed between the anti-HST and pro-HST campaigns leading up to the referendum.

The HST introduced in Quebec in 1991 received no federal backing to ease the transition like BC and Ontario received which is angering residents and politicians.

Recently, Bloc Quebecois leader Gilles Duceppe has been vocal about his disgust regarding the omission of HST compensation in the federal budget as well as in the federal leader’s platforms for the upcoming federal election. Duceppe claims that the federal government has failed to recognize Quebec’s harmonization of taxes that took place more than a decade ago.

In response, the Conservatives are promising compensation for the province by September 15 should they be re-elected into power but Duceppe is unhappy with the proposed solution saying it was offered “in bad faith.”

The federal Liberals (who are in favour of HST programs) and NDP party (vocally opposing the system), have yet to come up with a similar compensation plan for Quebec.

Quebec is proposing a $2.2 billion settlement be implemented to be distributed to residents who were the first in the country to undergo the harmonized taxation system.

Meanwhile, the federal Conservatives continue to push the HST system on other provinces claiming it enhances the economy by promoting investments provincially. In the short term however, the tax increase has shown to increase the burden on citizens while easing the burden on businesses. It is anyone’s guess as to whether the long-term will provide any relief for residents of BC and Ontario and whether the mail-in referendum scheduled for June 24 in BC will end the HST implementation on the backs of a federal election as well as a possible Canada Post strike.

As for Quebec, regardless of which party is elected, the promise of compensation for their HST program is just that: an election promise.

The recent change of referendum date in BC is also fueling the fire in the HST debate. Voters will make a decision via  mail on June 24 as to whether or not to keep the controversial tax system. And while the provincial Liberals are promising to abolish the tax if voted down, looking to history as an indicator, promises are not always kept in politics. As the vote has been moved up, and in light of the recent call for the federal election, provincial MP’s are scrambling to continue educating the public on the HST system.

Commercials for the federal election are taking priority over provincial ads which is concerning finance minister Falcon.  A recent poll done on BC residents suggests that the percentage of residents opposed to the tax has decreased since last July from 75 per cent down to 54 per cent which is still enough to abolish the tax. While the numbers have dropped,  Falcon fears that without ample time to communicate information, the federal election campaigns will continue to shed negative light on the provincial HST woes  which could lead to the demise of the system.  This leaves some residents encouraged while others such as businesses are still fighting to persuade the public to keep the tax in place.

Ballots will be mailed to residents in advance and voters can mail-in their responses prior to June 24.  Regardless of the outcome, the mail-in voting system will save the province $18 million; a point that should be favourable to both sides of the issue.

“…late today Craig James privately told Vander Zalm that Elections BC will not submit the successful petition to the Standing Committee until a final decision has been reached by the courts regarding a lawsuit by a big business coalition attempting to quash the petition.”

Needless to say the anti-HST movement was outraged. Vander Zalm’s response was:

“Craig James’ refusal to submit the successful petition Bill to the Standing Committee means that he has effectively destroyed the democratic process. James is opening the door for any group opposed to a Citizen Initiative in future to thwart the democratic will of the people simply by launching a challenge to that petition in court.”

Vander Zalm continued with:

“This is the worst kind of political meddling I have ever seen in all my political days. It challenges the credibility of the Chief Electoral Officer, and that of the entire organization of Elections BC. It must be stopped. This only strengthens our resolve to restore democracy in BC.  And that starts with overturning the government starting on November 15.”

Watch Vancouver Island’s A News coverage here.

By law, the mailout can only contain advertising that would happen regardless of the HST. Finance Minister Colin Hansen stated that the mailout will contain the government’s budget measures, which will include information about the new tax, but will not campaign against those trying to have the contentious tax repealed.

The legislation defines initiative advertising as anything aimed at promoting or opposing an initiative or draft legislation. Hansen ensured the government’s compliance with the law and stated that “we will not use this as a vehicle to campaign against the initiative.”