A public meeting on Tuesday, September 8 allowed Revelstoke residents to ask Columbia River-Revelstoke MLA Norm Macdonald questions about the proposed changes to the British Columbia tax structure. Macdonald stressed throughout the forum was that the HST is not a done deal yet. He said will only come into effect if the legislation passes, which is likely to be introduced next spring. The HST would then start on July 1, 2010.
While turnout was low and the tone was largely subdued, there was no shortage of questions being asked by members of Revelstoke city council and the public at large. Most of the questions came from business owners and individuals who are opposed to the HST. The prevailing sentiment was that the tax will hinder Revelstoke’s tourism industry and those involved in it. Many business owners and organizations whose services are currently PST exempt worry about what will happen once they lose their exemption and begin charging HST.
Bob Shafto, owner of Heli Canada Adventures, asked Macdonald which level of government decides what is and is not exempt from the new tax. He, along with many other businesses currently enjoying a PST exemption, are worried about what these new prices will do to their new and existing customer base, and wonder when and how they will find out about what will be exempt from the HST.
Unfortunately, the answer was not reassuring. Macdonald admitted that an exemption quota negotiated with the federal government has already been used up: “It’s a fait accompli if the legislation goes ahead,” he says. “The deal is done.”
Jackie Morris, Executive Director of the Columbia Mountain Institute in Revelstoke, commented was that while charities will be HST exempt, non-profit groups like the Columbia Mountain Institute are not. They currently break even through conference fees which are PST exempt, but their events will be subject to HST and she worries that conference registration will drop.
Several other questions came up during the meeting regarding what the government will do. These included queries on whether the provincial government will bow to public pressure regarding exemptions and rebates and how the federal government will divide up the tax revenue it generates from the HST. Others wondered if the HST will prevent the province from either raising or lowering their portion of the harmonized tax, or deleting taxes on certain items, and whether or not the HST would be rescinded if the NDP won the next election.
Questions revolved around how the HST will affect housing starts and tourism numbers and how manufacturing numbers compare to tourism numbers in the province.
Revelstoke City Councillor Antoinette Halberstadt asked whether or not the provincial government will give a higher portion of tax revenue to sectors struggling under the new tax.
Several questions also circled the issue of transparency: many wondered aloud whether there will be performance benchmarks to examine to see whether or not the program is successful, whether or not an HST commissioner will be hired to arbitrate on tax issues, and whether or not there will a single, non-partisan source of information on the issues.
Some of the questions focused on consumers: Halberstadt asked Macdonald his opinion on the fact that consumer taxation is raised on a lot of necessary items and services -- many of which used to be PST exempt. One business owner wondered aloud whether or not the HST will affect how much patrons are willing to tip.
Many of the questions related to business and how it will affect business owners. Shafto wondered if any tax credits will be given to businesses who have to shoulders higher costs, some wondered how it will affect the hotel tax, several others asked how BC intends to keep its tourism industry strong.
One gentleman questioned whether the Olympics will change any sentiments.
While the turnout was low, Chamber of Commerce Executive Director John Devitt pledges to have more information sessions designed to get the public informed and active. Macdonald encourages community dialogue regarding the new tax. “Take this as a starting point,” he said, “because you will be the expert on the impacts on your business.” He hopes business owners and interested individuals will share the impacts with others, to help the public understand the potential benefits and drawbacks to the tax.