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“…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.

Those are the elements that didn’t experience a change in the amount that is taxed.  Hotel rooms were subject to 5% GST and 5% PST prior to Harmonized Sales Tax. Under HST hotel rooms will be taxed at the full 13% HST moving forward. Taxi services used to be charged GST, but under HST that will change to 13% HST. Going camping? Your camp site fees are now taxed at 13% HST, a 7% increase comparing to the 5% GST that used be. Lastly, domestic air travel used to be subject to only a 5% GST – under Harmonized Sales Tax that changes to a 13% HST.

The question remains – will Harmonized Sales Tax help airlines, campground owners and taxi companies reduce their operating costs enough to lower prices at least 7%? If that doesn’t happen, the consumer’s fears become reality – prices are increasing. If the HST allows businesses to lower their service prices, well then the government is correct. Time will tell which group is correct – if you have any evidence of price changes in these sectors please post your thoughts below.

Maintenance services home-owners often take advantage of, such as lawn care, house cleaning, renovations services and major appliance repair (fridges, stoves, etc) will now be subject to 12% HST instead of the 5% GST. Repair of electronic items such as stereo equipment or computers was always subject to 5% GST and 7% PST, so the new 12% HST doesn’t change the amount of tax due.

Home insurance remains exempt from HST. Residential heat and electricity services is subject to the 12% HST, but a 7% Residential Energy Rebate applies to the PST portion of the tax, which reduces the total tax paid to 5%.Before HST came into play there was a small Innovative Clean Energy levy added to electricity bills which has now been eliminated.

Other Resources:

Ontario HST on Home Services

Very Brief Overview

The HST is a combination of the PST and the federal GST. It will be collected and redistributed to the provinces by the federal government. The HST varies in its rate and exemptions between the provinces, it’s set to 13% in Ontario and 12% in British Columbia. Learn more about Ontario HST exemptions and BC HST exemptions.

Its purpose
To stimulate the economy by lowering the tax on raw materials and production, in an effort to increase investment.

Opponents
Opponents often look at the short term effects, arguing that consumers face an immediate increase in the cost of many formerly exempt goods and services, including haircuts, bicycles, restaurant meals and health club memberships. There is also a concern that the HST will have long-term effects on service-based industries as a result of a decrease in consumer spending and because business will not adjust their prices to included the added savings (many in an effort to offset the decrease in consumption).

Proponents
Proponents agree that prices will increase in the short term, but argue the HST will ultimately lead to an increase in investment, which in turn will mean more jobs and a stronger provincial economy in the future. The HST will stimulate the economy and make provinces more competitive by eliminating the retail sales tax currently hidden in the costs of goods purchased by businesses. Top economists around Canada support the HST arguing that sales tax harmonization is proven to stimulate investment and will to long-term lead to economic growth.

Typical ornamental household plants are already taxed with both 7% PST and 5% GST, so the 12% HST you will pay when you purchase a bouquet of flowers is nothing new. But broccoli plants, tomato plants, apples trees and cherry trees all experience a 7% tax hike after July 1st.

The question remains whether the companies who sell these products will be able to reduce their prices by at least 7% after HST is implemented because of the claimed decrease in business related taxes.

Eligible individuals and families will receive 3 tax free payments in June 2010, December 2010 and June 2011. Individuals will receive a maximum of $300 paid in $100 amounts on the dates listed here. Eligible single parents and couples will receive up to a maximum of $1000 spread out over those sames dates. Single individuals earning more than $82,000/year will not receive HST transition cheques. Single parents or couples that earn more then $166,700 will not receive HST transition cheques either.

If you’re eligible, you must file your tax return to receive the cheque. There are a number of reasons that could potentially lead to “missing” HST cheques, as HSTinCanada has received numerous emails from people who believe they should have already received a cheque. If the CRA is expecting your spouse to file their taxes and they haven’t year, you won’t receive your HST cheque. Late filers can still receive the HST transition cheques; they will be cut approximately 8 weeks after CRA has received your income tax return.

If you are filing late, don’t delay too long! Taxes files over 1 year late forfeit the right to receive HST transition cheques.

Watch this short 2 minute video to learn why:

Unaffected items (currently charged 5% GST and 8% PST):

• Cable television services
• Mobile phones services
• Home phone services
• Home appliance repair services (stoves, refrigerators, etc)

Items that will jump from 5% GST to 13% HST:

• Electricity and heating services
• Internet access services
• Electrician, Plumbing and Carpentry services
• Landscaping, lawn care and private snow removal services

Other Resources:

BC HST on Home Services