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Harmonized Sales Tax (HST) discussion


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#21 Roger

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Posted 23 July 2009 - 06:32 PM

The Atlantic provinces have had the HST for some time and now have a thriving underground economy. It won't take long for consumers here to start asking for deals if they pay cash. It wasn't worth it for 5% but 12% will start the ball rolling. Here are some areas for potential cash deals:

- Gardening services (lawn mowing, fertilizing, new sod etc.)
- Home renovations
- General repairs around the house (electrical upgrades, house painting, rug cleaning)
- Auto repairs at the neighbourhood garage
- Computer repairs, servicing and upgrades
- Taxi fares (flat rate, turn off the meter)
- Take out food at the non-chain restaurants
- Hairdressers and barbers
- Flower shops
- Wedding photographers

Anyone care to add to the list?

#22 Ginger Snap

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Posted 23 July 2009 - 06:35 PM

This is insane! Now I have to figure whether or not my husband's business will be affected. Currently he only has to charge GST, but if he has to charge the HST, that's just a higher cost to the customer, which means some customers may rethink the whole cost thing.

#23 AnonAnnie2

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Posted 23 July 2009 - 06:43 PM

This is insane! Now I have to figure whether or not my husband's business will be affected. Currently he only has to charge GST, but if he has to charge the HST, that's just a higher cost to the customer, which means some customers may rethink the whole cost thing.


Product or service Ginger?

#24 Roger

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Posted 23 July 2009 - 06:47 PM

This is insane! Now I have to figure whether or not my husband's business will be affected. Currently he only has to charge GST, but if he has to charge the HST, that's just a higher cost to the customer, which means some customers may rethink the whole cost thing.


Here are the exemptions from the new tax...

Rebates and Tax Credits

To meet our unique requirements here in the province of British Columbia, the Harmonized Sales Tax would include the following point-of-sale rebates and tax credits for the provincial portion of HST:

o Gasoline and diesel motor fuels, including any biofuel components.

o Books, children’s sized clothing and footwear, children’s car seats and car booster seats, diapers and feminine hygiene products.

o A partial rebate of the provincial portion of the HST of up to $20,000 on all new housing.

There will be rebates for municipalities, charities and eligible non-profit organizations to avoid tax increases for these sectors. And there will also be temporary restrictions of input tax credits for certain purchases by businesses with taxable sales over $10 million and financial institutions.


There is not too much to figure out if your business is not in the list above and you already are collecting GST. If your husband is collecting GST @5% he will be collecting HST @12% a year from now or will be joining the thousands of other workers in the underground economy.

#25 AnonAnnie2

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Posted 23 July 2009 - 06:49 PM

So the GST and PST are now combined....
and the concern is that some additional products/items have been added that were GST exempt before? so the item is now exposed to an additional 5% where it was not before?

So it looks like this then for a restaurant bill?

10.00 plus 5% = 50 cents additional on a take out dinner for one

100.00 = 5.00 on a dinner for two

1,000 = 50.00 on a night out with buds?

Right?

#26 VicHockeyFan

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Posted 23 July 2009 - 06:51 PM

So the GST and PST are now combined....
and the concern is that some additional products/items have been added that were PST exempt before? so the item is now exposed to an additional 5% where it was not before?


Additional 7%

Your current $10 meal + tax, at $10.50, now becomes $11.20.

#27 AnonAnnie2

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Posted 23 July 2009 - 06:57 PM

1.20 in tax on a 10 dollar meal? sheesh sounds like Ontario!

#28 sebberry

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Posted 23 July 2009 - 06:59 PM

I can see Alberta tourism promoting low taxes to the Americans :D

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#29 Roger

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Posted 23 July 2009 - 07:00 PM

So the GST and PST are now combined....
and the concern is that some additional products/items have been added that were GST exempt before? so the item is now exposed to an additional 5% where it was not before?

So it looks like this then for a restaurant bill?
10.00 plus 5% = 50 cents additional on a take out dinner for one
100.00 = 5.00 on a dinner for two
1,000 = 50.00 on a night out with buds?
Right?


Nope the change is an additional 7%. Only GST at 5% is now charged on restaurant bills.

So that $100 food bill is now $105 with tax and will be $112 next July. How they will handle the liquor tax is yet to be determined by the tax thieves.

It is not only dining out you have to be concerned about. Your grocery bill will also go up. All those convenience food items you pay GST on now (donuts, muffins etc.) will now be taxed at 12% instead of 5%

#30 mat

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Posted 23 July 2009 - 07:03 PM

Web design, hourly or contract rate (quote per job) billing is currently PST free . Will that change?

If it does, and HST must be included for all projects, that may push some of my clients to reconsider larger projects

#31 Roger

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Posted 23 July 2009 - 07:21 PM

Web design, hourly or contract rate (quote per job) billing is currently PST free . Will that change?

If it does, and HST must be included for all projects, that may push some of my clients to reconsider larger projects


I assume your annual sales are over 30K so you are presently collecting GST @5%. Next year you will be charging your clients 12%. If your clients are businesses they can use the entire 12% as an input credit from their HST payable just like they do now with GST. For them the tax will be tax neutral.

But if your clients are end users that do not collect HST your services will cost them 7% more next July.

#32 Roger

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Posted 23 July 2009 - 07:29 PM

The Times Colonist has an article tonight on the HST

B.C.'s 12-per-cent harmonized sales tax will hit some consumers hard

The added costs to consumers will come from the fact the new tax will apply to the same goods and services that the GST applies to, and that includes many items that were not subject to PST.

For example, restaurant meals, excluding alcohol, have not been subject to PST, but will be subject to the new HST. So, too, will the purchase of such things as bicycles, school supplies and non-prescription medicines


What gets taxed: PST-exempt goods and services to be subject to B.C.’s harmonized sales tax

GOODS

• Residential fuels (electricity, natural gas) and heating.
• Basic cable TV and residential phones.
• All food products (only basic groceries will remain exempt under new tax).
• Non-prescription medication.
• Vitamins and dietary supplements.
• Bicycles.
• School supplies (books will continue to be exempt).
• Magazines and newspapers.
• Work-related safety equipment.
• Safety helmets, life jackets, first-aid kits.
• Smoke detectors and fire extinguishers.
• Energy conservation equipment (e.g., insulation, solar power equipment).

SERVICES

• Personal services such as hair care.
• Dry cleaning.
• Repair services for household appliances.
• Household maintenance such as renovations and painting.
• Real estate fees.
• Membership fees for health clubs.
• Movie and theatre tickets.
• Funeral services.
• Professional services such as accounting and home care.
• Airline fares within Canada.


#33 yodsaker

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Posted 23 July 2009 - 07:45 PM

So the GST and PST are now combined....
and the concern is that some additional products/items have been added that were GST exempt before? so the item is now exposed to an additional 5% where it was not before?

So it looks like this then for a restaurant bill?

10.00 plus 5% = 50 cents additional on a take out dinner for one

100.00 = 5.00 on a dinner for two

1,000 = 50.00 on a night out with buds?

Right?


Gonna hurt if they charge HST on buds!

#34 G-Man

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Posted 23 July 2009 - 07:56 PM

I would support an HST on buds, the revenue from BC alone would be about 480 million

#35 mat

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Posted 23 July 2009 - 08:07 PM

Oakland CA passed a tax on medical marijuana yesterday

CNN: About 80 percent of voters chose to impose the tax on Oakland's medical marijuana facilities, according to the Alameda County Registrar of Voters.

Some celebrated the news at Oaksterdam University by hand-rolling large marijuana cigarettes or stuffing cannabis into pipes. The school trains students for work in the medical marijuana industry.

"It is important because the city of Oakland is facing a massive deficit like many jurisdictions in California," said Steve DeAngelo, a leader of one of the city's cannabis clubs. "And we decided to step up to the plate and make a contribution to the city in a time of need."

DeAngelo, one of the people who led the effort to get the tax approved, said his business will now have to pay more than $350,000 from the new tax next year. Watch report from CNN's Dan Simon »

Oakland's City Council was also behind the move.

"Given that the medical cannabis dispensaries are something that was legalized in California, why not have revenue from it?" said councilwoman Rebecca Kaplan.


Typically Fox News weighed in:

California's $1.4 Billion Pot Tax Hopes May Be Up in Smoke
California's tax board says the state could reap about $1.4 billion by taxing their biggest cash crop -- marijuana -- but their estimate appears to be based on hazy "studies" conducted by marijuana advocates.


This has been debated before on VV through other threads - but worth considering as the BC Government is putting through harmonization taxation.

#36 martini

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Posted 23 July 2009 - 09:32 PM

I hope you didn't vote Liberal :P

This is reason #112 that I didn't.

#37 yodsaker

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Posted 23 July 2009 - 10:29 PM

This is reason #112 that I didn't.


what were the other 2,347?:D

#38 spanky123

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Posted 24 July 2009 - 05:56 AM

The TC is reporting that by implementing HST, the BC Government will be given $1.6B by the Feds to use as they see fit.

With an undisclosed budget shortfall rumoured to be far in excess of the $450M claimed prior to the election, does anyone think that the $1.6B is not the sole motivating factor here?

#39 VicHockeyFan

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Posted 24 July 2009 - 06:52 AM

TC reports restaurant/bar alcohol drops from 15% now to 12%.

#40 martini

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Posted 24 July 2009 - 06:56 AM

what were the other 2,347?:D

;)

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