The HST might just save you some money… if you shop across the border in Washington State. The Washington State Department of Revenue issued a press release today that clarified a portion of their tax law that will be advantageous to British Columbians and Ontarians as of July 1st. Put simply: when shopping in Washington State the residents of those provinces will no longer have to pay sales tax.
The state law (RCW 82.08.0273, enacted in 1965) says that a sales tax exemption is allowed for residents of jurisdictions that impose a sales tax of three percent or less. The shift to the HST is a shift to what Washington state considers a “Value Added Tax”–NOT a sales tax, therefore residents of BC and Ontario will be eligible for retailers to offer the exemption.
British Columbia, Ontario Residents to Become Eligible for Non-resident Sales Tax Exemption
OLYMPIA – June 8, 2010 – Beginning July 1, residents of British Columbia and Ontario become eligible for a non-resident sales tax exemption on purchases of goods in Washington for use outside the state.
The release goes on to say that while retailers don’t have to offer the exemption, most do.
This is great news for BC residents, if the HST passes, as it represents a reduction of 9% in the price of goods that are, in many cases, already cheaper over the border. It’s not great, however, for the BC government; the current party line is that the HST will be good for business. That’s not really the case when there’s a strong motivation for the large portion of the population that lives within two hours drive of the border to shop at home.
Will you be more likely to cross the border and shop if your purchases become tax exempt? Does this change your mind on the HST?
[...] This post was mentioned on Twitter by Graham Williams and KC, Fray Close. Fray Close said: RT @threepio: Hate the HST? You might change your mind: as of July 1 your cross border shopping becomes tax free – http://twurl.nl/rsdylp [...]