XPost: bc.politics, van.general, can.politics   
      
   Asinine Gordon Campbell government just lost millions of dollars to the United   
   States.   
   The U.S. has added an incentive to counter the hated coming HST in BC - no   
   U.S. tax on   
   goods bought in Washington by British Columbians.   
      
   You asked for it, Campbell.  Now you've got major competition from the U.S.   
   and those   
   businesses and corporate types who backed your Hated Sales Tax are going to be   
   reeling.   
      
   Anyone else looking forward to the Recall of Liberal MLAs in November?   
   _______________________________________   
      
   Wednesday Jun. 9, 2010 3:46 PM PT   
      
      
   The B.C. government and retailers are trying to downplay a decision by   
   Washington State   
   that will allow residents in British Columbia and Ontario to enjoy a sales tax   
   break on   
   goods purchased in the U.S. state once the harmonized sales tax comes into   
   effect.   
      
   Washington officials say residents in those two provinces will be eligible for   
   a tax   
   exemption on tangible goods purchased for use outside of the state, such as   
   clothing or   
   electronics, once the HST begins July 1.   
      
   Lodging, restaurant meals and other services inside the state are exempt.   
      
   Washington gives its retailers the option to waive the state's 6.5 per cent   
   sales tax for   
   residents living in areas with sales taxes below three per cent.   
      
   Although the incoming HST will be 12 per cent in B.C., Washington's Department   
   of Revenue   
   considers the levy to be zero because the harmonized tax is "value added," or   
   VAT, instead   
   of a straight sales tax.   
      
   B.C. Finance Minister Colin Hansen says the HST will still apply to some   
   Washington state   
   products people bring back to Canada over their duty-free limit and that might   
   temper some   
   people's enthusiasm for cross-border shopping.   
      
      
   Mark Startup, President of Retail B.C., says some chronic cross-border   
   shoppers will be   
   thrilled with the news.   
      
      
   But he also says retailers on this side of the border have managed to compete   
   and survive   
   with their U.S. competitors despite the lure of a strong Canadian dollar.   
      
      
   To receive the exemption, visitors must show proof of identity, like a   
   driver's licence,   
   to the U.S. seller.   
      
   The state already offers a similar exemption to provinces that already have   
   the HST, such   
   as Nova Scotia, New Brunswick, Newfoundland and Labrador and Quebec.   
      
   The news isn't being received favourably by retailers in Washington State. Ken   
   Oplinger,   
   the President and CEO of the Bellingham/Whatcom Chamber of Commerce &   
   Industry, says the   
   tax break will remove $1 to $2-million from Whatcom County's tax base this   
   year alone.   
      
   "The sales tax paid by Canadians here is being used for our tax base – now all   
   this money   
   will no longer be used for services we need, like roads and public safety,"   
   Oplinger told   
   ctvbc.ca in a phone interview Wednesday morning.   
      
   "The bottom line is that in our economy that's already hard hit with a   
   municipal   
   government that is already cutting services is going to look at another round."   
      
   The exemption law was first enacted in the state in 1965 to attract Oregon   
   residents to   
   shop in Washington.   
      
   Oplinger said although retailers are not obligated to give the tax break,   
   historically the   
   vast majority have because they feel they have no choice.   
      
   "When you look at the city of Vancouver, Washington, just across the border   
   from Oregon,   
   there are only a handful of small retailers that don't participate," he said.   
      
   "They'll see an increase in customers if they give it and see customers that   
   are going to   
   be expecting that money taken off. They'll walk if they don't."   
      
   David Webster, the Chief Administrative Officer for Bellingham, says the new   
   rules won't   
   change how they receive British Columbian shoppers.   
      
      
   "This will clearly be an impact on our sales tax revenue but we're still going   
   to welcome   
   people from B.C. with open arms," he said.   
      
      
   Both Bellingham's chamber of commerce and city council are asking Washington's   
   governor to   
   weigh in on the law and is considering asking for it to be repealed.   
      
   Any purchases coming back into Canada are still subject to duty and border   
   restrictions.   
   Canadians returning from the U.S. are allowed $50 worth of items duty free   
   after a 24-hour   
   absence. The limit jumps to $400 after 48 hours.   
      
      
      
   News video:   
   http://www.ctvbc.ctv.ca/servlet/an/local/CTVNews/20100609/bc_hst   
   washington_100609/20100609?hub=BritishColumbiaHome   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)