For the Record. No 7% HST ON Residential Energy.

From: Bob Spiers Sent: September-02-09 11:25 AM
To: Hansen.MLA, Colin
Subject: confused about HST on Home Heating

My MLA has been quoted as "is pleased that there will be a full HST rebate on residential heating costs." and this interpretation has been expressed in the Globe and Mail as well as other reputable newspapers. Global TV however reports "The government says it will also provide an HST rebate on residential energy costs, which will match the current exemptions on the PST."

When I read the backup info on the HST on the provincial website "the provincial government also proposes to provide a provincially administered HST exemption for residential energy use. "
and there is take of a point of sale rebate equivalent to the PST.

Can you confirm what I will be charged on my Terasen Gas bill for heating. Will it be a 12% HST and then a 7% credit for Prov.Rebate Program. (effectively leaving on the 5% GST OR will there be no HST charged at all.

Also, could you confirm whether the HST will be charged on the Carbon Tax portion of my Terasen Bill as the GST is charged. (Tax on a tax)

Thanks in advance for your quick response.

Bob Spiers
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From: CTBTaxQuestions FIN:EX
Subject: RE: confused about HST on Home Heating
Date: December 1, 2009 4:21:00 PM PST
To: bob spiers

Your email has been forwarded to this branch for response. Thank you for your inquiry. We apologize for the extensive delay in responding.

This rebate is for the 7% provincial component of the HST only.

Details of this program are still being developed. Please check our website (link below) for updates.

This correspondence describes the proposed HST and is for information purposes only. In the event of a conflict between this correspondence and any legislation enacted to implement the HST, the legislation will govern. The Ministry is not responsible for updating this response if there are any subsequent changes to the proposed HST. The HST will be administered by the Canada Revenue Agency. For technical questions please contact the Canada Revenue Agency online at http://www.cra-arc.gc.ca/ or by telephone at 1 800 959 5525.
HST Inquiries
Tax Policy Branch
Ministry of Finance
http://www.gov.bc.ca/hst/