TAX NEWS - June 2010

Canadian Tax Exemption Upsets Local Consumers

WHATCOM COUNTY, Wash. -- News from the Washington State Department of Revenue on Tuesday, saying the state will allow British Columbia residents shopping in Washington to avoid paying sales tax, has angered some Bellingham shoppers.

"I think actually if B.C. residents are going to come and be a part of this community, they should pay the same sales tax we do." - shopper

"If you are purchasing it in an area you should just pay the tax since we have to pay taxes for some products that they're purchasing to come into here to begin with."  - shopper

The exemption starts July 1st of this year, when B.C.'s new 'harmonized sales tax' takes effect.

A 45 year old state law allows shoppers from jurisdictions with sales taxes under 3% to avoid the charges. B.C. meets those conditions with the adoption of their new law.