Residents of provinces that have adopted the HST have most likely experienced an automatic harmonized sales tax applied to products that are ordered or shipped to their residences. What is not as readily experienced or known is that residences of provinces that have not adopted the HST will have to pay the additional tax when shipping domestic goods to any of the participating provinces. For example, if an Alberta resident ships a package to a resident in Ontario, they will be charged HST.

This tax regulation has residents of non-HST adopting provinces frustrated-with reason. While provinces may not have adopted the tax, residents are still paying for the decision that other provinces made. According to the federal Excise Tax Act if the province of destination applies HST, the goods shipped will be taxed accordingly. Similarly, if the goods are shipped to a province where only GST applies, only GST will be charged. The Act also applies to brokering services. If the goods come through a province where HST is applied, HST must be paid and is added to the cost of the goods.

While lawmakers see logic in the way taxes are charged, the Act still leaves most consumers scratching their heads as to the rhyme or reason behind when the dreaded tax is applied and where. And although the controversial tax was outlawed in British Columbia, residents across the country will continue to pay as long as shipments are made to Ontario and Atlantic provinces.

According to the Stop Smart Meters group based in Nanaimo, the new smart meters have been reported to have adverse health effects due to exposure to the electromagnetic radiation emitted by the devices. This is cause for concern for BC residents as BC Hydro is moving forward with the initiative without any consent from the people.

For some, the move is too close to the way the HST was handled by the provincial government-with no democratic steps taken. Watching Ontario residents fight the smart meter battle with the HST tacked onto energy costs has Nanaimo residents riled up to fight a similar fight. The group is also taking further steps by making an official petition to the government under the BC Recall and Initiative Act in order to reverse the decision of BC Hydro to install smart meters. Starting with more than 15, 000 signatures, Citizens for Safe Technology has also joined the fight and is looking to collect more than 100,000 signatures by February 2012. They have already approached Energy Minister Rich Coleman to stop the smart meter program until such time as the BC Utilities Commission can make an official review of the program.

At the other end of the country, year-end reports from Ontario have confirmed that residents are paying more for their electricity than before the installation of the meters and with the addition of the HST, residents are struggling to keep up with bills. Furthermore, both Ontario and BC residents are leery of the implications that an invasion of privacy will take place due to the data that the wireless meters collects. The data collected includes the amount of power used, a breakdown of when residents are at home, and other personal data of hydro usage which potentially could be leaked to parties with malicious intent.

In order for the smart meters to be outlawed, signatures from more than 10 per cent of registered voters must be collected before forming an official question to the government. At that time, a referendum vote just like the HST can be held but not until 2013 according to laws in BC. Signatures are being collected online for the petition at the main Stop Smart Meters website.

A major debate in the recent Provincial election, removing the HST from heating costs has created tensions in Parliament and has led to a bill being introduced to address the issue.  MPP Michael Mantha who represents Northern Ontario constituents was the one responsible for bringing the bill to Parliament in hopes that it would bring about changes.

In a close vote of 54-50, all PC and NDP members of Parliament voted the bill through a second time.  While this has encouraged some MPPs the provincial Liberals have adamantly expressed their displeasure and vowed to vote down the bill before it becomes law.  According to provincial Finance Minister Dwight Duncan, the Liberals have already determined not to call the bill for a third time which will ensure its failure.  And in a recent statement, Duncan declared that in order to have the bill passed, the NDP and PC MPPs would have to defeat the government thus, calling another election.

The proposed bill would trim approximately $150-300 annually from Ontarians heating bills but ultimately cost the province $350 million a year from removing the 8 per cent from heating bills.

While Premier McGuinty stated that the bill is “[...] not a bad idea in and of itself” he is concerned with how the province would make up the $350 million.  McGuinty also believes that cutting the HST from heating bills is not necessarily the wisest course of action given the current provincial deficit of $16 billion.  The primary focus of the Liberal government is to address the needs of seniors by introducing and implementing $1,500 annual home renovation credit.  This plan is geared towards giving citizens a break on the cost of living and allowing seniors to live in their homes longer because of implemented home improvements such as wheelchair ramps.  According to McGuinty, if passed, the plan would stimulate the economy creating more than 10,000 jobs and generating $800 million in the construction industry.

It is clear that McGuinty and the Liberals will continue to focus their energy on other issues not surrounding the HST.

While NDP leader Andrea Horwarth and PC leader Tim Hudak have both committed to removing the HST from electricity and heating as well as Hudak removing the HST from gas,  McGuinty’s Liberals have had a different agenda altogether-an agenda that made its way into citizens’ mailboxes this week.

Following the final transition cheque that was to be received by Ontario citizens in June, there was no receipt, letter or friendly advisory issued along with the payment. This week however, many residents received a friendly reminder letter outlining the benefits of the HST creating an estimated 600,000 jobs, a more favourable foreign investment environment and of course, placing additional funds in people’s pockets. Conveniently, these letters were drafted on official provincial letterhead and arrived just prior to the provincial votes being cast. The letters also remind citizens of the Energy and Property tax credit they received as a result of McGuinty’s legislation.

And while McGuinty is denying any alleged ‘official’ connection to the letters, it is suspicious given that the letters were signed by the Premier himself.

As a result, Horwarth and Hudak are capitalizing on the public scrutiny of the HST in this election hoping that their highlights on McGuinty’s capital tax reductions and harmonization of the the taxes in Ontario will glean some votes for their respective parties.  In light of B.C.’s recent rejection of the harmonized tax system, some analysts are anticipating that the HST issue will play a large part in this provincial election.

As far as the polls are concerned however, the last publicized polls have indicated that the province may be headed for a minority Liberal government with both the NDP and PC parties fighting neck-in-neck for the opposition spot with the Green Party trailing far behind. Environmental issues are also said to play a role in this upcoming election Thursday, October 6, 2011.

In recent weeks, it has been confirmed that Premier McGuinty plans to raise the HST percentage if re-elected this fall while Tim Hudak has adamantly claimed that his party is seeking to reduce the HST and the financial burden it has placed on families. As many families have felt the pressures of the added HST on their bills this past year, the issue of the taxation system has become a prominent issue in the upcoming election.

Hudak has publicly committed to removing the HST at the gas pumps and reducing the cost of energy within the province as it relates to the HST. Hudak claims that “[families'] hydro bills are going through the roof and they need relief” from the taxation systems that McGuinty has put in place including the mandatory ’smart meters’ which Hudak plans to remove if elected.

By reducing home hydro and heating bills, Hudak hopes to reduce Ontarians overall costs annually by approximately $275.

In a recently released NDP party ad, leader Andrea Horwath is promising to do the same. By removing the HST from hydro bills the ad claims the NDP party will “[...] make life affordable by taking the HST off essentials like hydro, heating and gas.” In response to the NDP party’s claim however, Hudak has released statements to the public informing voters that the NDP party will not be reducing any taxes until 2015 according to their platform.

As the October election draws near, the parties are neck in neck for the majority of the votes according to a recent poll. Attack ads have been launched from both the Liberal and PC camps while the NDP party has refused to release mud-slinging-type ads for the campaign having resorted to a positive approach to gain support from voters.

Ontario residents will go to the polls on October 6 for the provincial election taking the HST and surrounding tax issues into consideration before determining the next provincial leader.

In response to voters concern over the HST, Ontario NDP leader Andrea Horwath is building a platform promising to reduce the costs of heating and electricity as well as gasoline by lowering the HST percentage. According to Howarth, “the HST has left Ontarians feeling the squeeze.” Horwath believes that if households are in order financially, then Ontario’s economic state will follow suit. The party plans to reduce the tax by one per cent over the course of four years and setting a cap on gas prices.

Also getting on the HST election bandwagon are the provincial Tories. Conservative candidate Tim Hudak is vowing to not only reduce the HST burden placed on Ontario families but also the eco tax introduced by Liberal leader Dalton McGuinty. Hudak claims that only his government would truly relieve families with their plan to remove the HST and Debt Retirement Charge off of heating and energy bills as well as reduce income taxes which Hudak states only “add to the family burden.”

And while the competing parties address the HST issue at hand, Premier McGuinty has yet to offer voters any relief on the HST issue. In fact, McGuinty continues to maintain his stance stating that in order to meet the needs of the province by making reforms to the education and health care system, the HST will need to stay in place to generate revenues.

Whether or not this stance will cost McGuinty the October 6 election is yet to be seen but in light of the referendum in BC, Ontario voters are taking a closer look at their own HST and making it an election issue.

While Canada Revenue Agency’s website states that signing up for direct deposit for HST/GST and OSTTB rebates is more efficient, the site also states that if individuals only recently signed up for the rebates to be deposited directly, cheques may still be mailed for this payment until the direct deposit information is processed. For those who already have direct deposit information on file, CRA is expected to deposit the rebate anytime after June 10, 2011 according to their website.

Residents who filed 2010 taxes after May 9, 2011 can also expect delays in receiving the OSTTB rebate cheque as the CRA has cited a processing period of 6 to 8 weeks. This places the receipt of the cheque anywhere between late June and early July.

To further add complications to the situation, although Canada Post initially assured customers that important government cheques would be mailed on schedule, today’s official lock-out announcement will pose increasing delays for all mail across Canada.

In a statement released earlier today (June 14, 2011), Canada Post cited upwards of $100 million in losses by implementing 12 days of rotating strikes nationwide. Rising safety concerns and continued difficulties in negotiations have forced the company to shut down until further notice. Canada Post is said to clear any mail that has remained in their system until June 14 but will not be continuing regular operations until an agreement has been reached.

Canada Revenue Agency has also cited that during a postal strike or lockout, only the core government-issued cheques will be mailed out on the 20th of each month; a slight delay in payments.

The following list are cheques that will continue to make their way to residents during the lockout

(as cited by CRA (http://www.cra-arc.gc.ca/gncy/pstlstrk/menu-eng.html):

• Canada child tax benefit (CCTB)
• Provincial/territorial benefits that are combined with the CCTB:
  • British Columbia family bonus
  • New Brunswick child tax benefit
  • Child benefit for Newfoundland and Labrador, Nova Scotia, Nunavut, Northwest Territories, Yukon, Ontario, and Saskatchewan
• Old Age Security (OAS)
• Canada Pension Plan (CPP)
• Guaranteed Income Supplement (GIS)

Unfortunately for residents who are counting on rebates to assist with every day life, these delays are costly. One can only hope that negotiations will continue with Canada Post and that Canada Revenue Agency will not use the lockout as an excuse for late payments for too long.

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.

The provincial government in B.C. has also sent out welfare cheques early to side-step the possible ramifications of a postal strike including delay of payments.

Last week Canada Post assured Canadians that tax rebate cheques, government services and programs will be mailed out even if a strike occurs. After reaching an agreement with the union it was decided that volunteer mail sorters will be used in order to prevent any disruptions in regular services.

Finance minister Dwight Duncan was especially concerned that the final HST transition cheques for Ontario residents be delivered on schedule even going so far as to write to federal Finance Minister Flaherty on the matter. Duncan, a strong believer in the HST program as it relates to Ontario’s economy stressed the importance of a seamless transition without disruption. Duncan also requested that any government program cheques be given priority mailing status.

B.C. residents find themselves in a similar situation regarding the postal service, however, more notably as it relates to the HST Referendum in June. Possible disruptions in the mailing of ballots to residents as well as mailings to Elections B.C. will need to be addressed by the chief electoral officer according to B.C. Finance Minister Kevin Falcon.

Falcon remains confident that B.C. residents will get their vote provided the chief electoral officer prepares for any unforeseen circumstances while still abiding by the Referendum Act. Voters are scheduled to receive mail-in ballots between June 13 and June 24.

Meanwhile, labour talks continue to negotiate a suitable contract for some 50,000 workers. The latest proposal was received on Sunday night and is currently under review. Both sides are committed to reaching a deal soon to avert a potential postal crisis.

Ontario’s PC leader Tim Hudak is looking to reduce the cost of gasoline for every day citizens and is considering the option of removing the HST from the cost of gasoline. Hudak wants to ensure that steps are taken to make sure “[...] average, everyday families can catch up.” While on the surface this plan appears to have the potential to lower prices and ease the stress on pocketbooks, Finance Minister Duncan isn’t sold on the idea.

Duncan is convinced that by removing the HST portion of the gasoline price or by lowering the 14.7 cents of provincial tax oil companies would merely make up the difference. Ontario’s Liberals state that every point that is taken off of the HST costs the government $3 billion in revenue making it necessary to cut other programming. Most citizens will agree that the provincial revenues gained from their money at the pumps is the least of their concerns. Duncan also asserted provincial profits drop with higher gas prices due to a decrease in fuel consumption.

NDP Leader Andrea Horwath has a different solution for the problem. Horwath believes gasoline prices should be regulated provincially. With government regulation, consumers won’t be hit with any major increases at the pumps. The disadvantage to this plan, according to the government, is the benefit consumers now reap when the prices unexpectedly drop overnight. The regulated cost of gas prices is also said to be higher overall.

As federal election campaigns continue to run their course, opposition parties in Ontario are seeking to make an issue of the rising gas prices. However, it appears as though the issue will continue to cause strain on Canadian’s fuel budgets costing households an additional average of $950 more this year (CIBC World Markets).