Saturday, March 27, 2010

Cow Meeting with Finance Minister Colin Hansen Friday March 26

At a 35 minute Cow meeting at City Hall on Friday with no media in attendance I was able to get some answers and confirmations from Finance Minister Colin Hansen about 2 areas of concern.
(My questions and Minister Hansen's answers below)

HST Concerns:
  • The good news is that there will be a point of sales rebate of the Provincial Portion of the HST of 7% on my Terasen Gas bill for residential home heating. (confirmed)
  • The Provincial Carbon Tax will attract the extra 7% Provincial portion of the HST on July 1, 2010? (Tax on a tax) (confirmed) The B.C. HST would be applied to the purchase price including any carbon tax on all other fuels such as heavy fuel oil, propane, butane, natural gas and ethane.
  • The 3% Franchise Fee on any Terasen Gas bill in any areas where it is collected will also for the first time attract an additional 7% tax effective July 1, 2010? (Tax on a tax) (Not sure but conceded that it might occur) As it charges GST but no PST now I am confident that this is the case.
  • When is the deadline to avoid the HST to buy my burial plot? Or other items. (Items purchased before Apr. 30 for use after July 1, 2010 may be exempt. An example was Airline tickets that some people are purchasing now prior to the Apr. 30 deadline. An example of this is Whistlers next winter's season pass, but only until April 30. Plus you save an extra 7% if you buy now before the Harmonized Sales Tax (HST) is introduced. CAUTION: Overall, the HST would apply to goods and services purchased on or after July 1, 2010. In addition, the HST would generally apply to prepayments starting on May 1, 2010, for goods or services that would be provided on or after July 1, 2010. HST General Transitional Rules Ask before you purchase.
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Home owners Grant questions:
  • In 2009 the Light Industrial and Major industrial classes received a 50% rebate on their school taxes. This will increase to 60% in 2011? (Confirmed)
  • Farms with farm classification will receive a 50% rebate on school taxes in 2011? (Confirmed)
  • All residents living outside the 3 lower mainland regional districts (VERNON for example) will see a $200 increase in their homeowners grant in 2011? (Confirmed)
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Minister Hansen was quite informative and I was pleased to get confirmation re the 2011 increase in the Home Owners Grant, the Residential 7% rebate re Terasen Gas and the information about the Apr. 30 deadline re purchases. The 2 examples of a tax on a tax remain as an irritant. A brief 35 minute meeting that was informative and productive.

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