Sunday, February 26, 2017

B.C. budget proposes PST relief for business electricity bills

Current Reg. Re PST exemption
for Residential And Farm Use

By Tom Fletcher -  February 21, 2017 Kamloops this week.
Finance Minister Mike de Jong has accepted the advice of a business advisory group, proposing to take the provincial sales tax off business electricity bills over the next two years. In his pre-election budget on Tuesday, Feb. 21, de Jong announced a plan to cut the PST on electricity in half effective Oct. 1, from seven per cent to 3.5. The rest would be removed on April 1, 2019. Residential and farm power bills are already exempt from PST. Municipalities, hospitals and schools pay PST on their electricity purchases and would benefit from the change.
Don Quixote Note: If the Liberals get elected and this 3.5% reduction comes into effect and does apply to Municipalities then Vernon's Municipal budget for electricity should be reduced by 3.5%. The effect on our street lights budget  

2-602 ELECTRICITY  $563,854 STREET LIGHTS (421)
and Spray Irrigation and Sewer system budget 2-602 ELECTRICITY    $773,840  : SPRAY IRRIGATION (490)

2-602 ELECTRICITY   $113,678   VWRC (TREATMENT) (491) will be 1,451,372 x .035 = $50,798 in 2018.

There will be a smaller savings for the October to Dec. period in 2017. The above 3 line items come from the 2017 Vernon Budget. 

There are other line items of electrical use by the city for example : 2-602 ELECTRICITY $152,518 (MULTI USE FACILITY - OPERATIONS (840)

2-602 ELECTRICITY  $159,944 AQUATIC CENTRE (865)

There should be a savings on our water bills at GVAC as they have a large bill for the electricity used by the Mission Hill & Duteau water treatment Plants.

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