Timmins Endorses Anti-HST Resolution
The city of Timmins is a northern Ontario city who is using its municipal voice to request an harmonized sales tax (PVAT portion) point of sale exemption on heat & hydro. The Daily Press reports in an article entitled "City support resolution fighting HST" that the City of Timmins endorsed a resolution calling on the Ontario government to exempt items of necessity, such as gas and utilities.
It would be preferable if the cities would use proper language as they are not looking for an exemption. The government of Ontario does not have power to amend the Excise Tax Act (Canada) to add an exemption. Ontario does have the power to grant point of sale rebates. A point of sale rebate on a taxable good is better than an exemption because suppliers of exempt property and services are not entitled to claim input tax credits in connection with business inputs related to the exempt supply.
The resolution endorsed by Timmins was prepared by North Bay. North Bay's resolution has been forwarded to other Northern Ontario cities including Sudbury, Sault Ste. Marie and Thunder Bay.
Maybe Timmins could seek Shania Twain's voice and the message will get more press.
For more information, please call Cyndee at 416-760-8999.
Cyndee Todgham Cherniak is counsel to and in affiliation with the International Trade Law and the Tax Law (Commodity Tax
