TAX NEWS - JUNE 2010

Canada Tax: Harmonized Sales Tax (HST) on parking tax looms

02 June 2010 -- Harmonized Sales Tax (HST) on parking tax looms

The Harmonized Sales Tax will soon add to the costs of motorists who use pay parking lots.

The 12 per cent Harmonized Sales Tax (HST) will be added on top of the 21 per cent TransLink pay parking tax (which tripled from seven per cent on Jan. 1), resulting in drivers paying 35.52 per cent in compounded tax at pay parking lots.

That's the highest tax on parking in North America, exceeding the 35 per cent charge in Pittsburgh and 25 per cent in San Francisco.

Downtown Vancouver businesses fear they will lose customers, who will have more reason to go to areas with free parking.

The stacking of the tax means Victoria will profit from the change – the province will receive its seven per cent share of the Harmonized Sales Tax on pay parking, an amount it never previously collected.


Tax burden throttling drivers

Metro Vancouver drivers are paying the highest fuel tax load in the country and the hit is about to get worse.

B.C.'s carbon tax goes up another 1.2 cents to 4.5 cents per litre on July 1.

And TransLink's gas tax rose three cents to 15 cents per litre back in January to help erase the transportation authority's deficit.

The tax load means local residents pay the highest gas prices in the country, according to the Canadian Taxpayers Federation.

B.C. director Maureen Bader said the province has done a good job of cutting income taxes but now needs to put the brakes on rising fuel taxes.

"The real gougers at the pumps are government," she said, adding they must reduce spending.

"TransLink is a bureaucratic nightmare – as long as they can go back to the trough to feed they'll never have an incentive to make real cost reductions."