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 Washington State
 HST in BC means no tax in Washington!!
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kar-VROC
New Member



79 Posts

 Posted - 06/11/2010 :  9:58 PM  Show Profile  Reply to this posting

VANCOUVER (CBC) - B.C. and Ontario residents will not have to pay sales tax in Washington state starting July 1, the state government announced Tuesday.



The savings would amount to as much as 9.5 per cent in some areas of the state, which has a basic sales tax of 6.5 per cent. Individual counties can add their own sales taxes of up to three per cent.


Washington state law allows a sales tax exemption to residents of jurisdictions that impose a sales tax of three per cent or less.


Residents of B.C. and Ontario previously did not qualify for the exemption but both provinces are adopting a harmonized sales tax July 1, which technically eliminates provincial sales taxes.


The state's 'non-resident sales tax exemption' will apply to purchases of goods in Washington for use outside the state, the state's Department of Revenue said in a news release.


"The exemption applies only to tangible personal property and does not apply to lodging, meals, or other retail services that are provided in the state," the release said.

Visitors from B.C. or Ontario to Washington need to show proof of residency, such as a driver's licence or passport, to get the exemption.


The move is expected to entice shoppers south, especially in communities close to the U.S. Vancouver is about 30 kilometres from the border.


People who live in Newfoundland, New Brunswick and Nova Scotia, which already have the HST, and Alberta and the three territories, which have no provincial or territorial sales taxes, already don't have to pay the tax in Washington.
http://ca.news.yahoo.com/s/cbc/100608/canada/canada_britishcolumbia_bc_washington_state_sales_tax_exemption_1 br /
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AcesHigh
Advanced Member


Hope, BC
Canada

7100 Posts

 Posted - 06/12/2010 :  08:30 AM  Show Profile  Reply with Quote
Right... And coming back to Canada you have to pay duty.
You save very little but "Some" in the end.
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Kathryne
Intermediate Member



925 Posts

 Posted - 06/12/2010 :  08:49 AM  Show Profile  Reply with Quote
quote:
Originally posted by AcesHigh

Right... And coming back to Canada you have to pay duty.
You save very little but "Some" in the end.



You don't pay duty on your exemption amount AND if the product is made in the USA it is governed by NAFTA, and is duty free. You will be assessed HST and duty on anything above your exemption amount.

Personally, I find it much easier to shop in Alberta. I have saved hundreds of dollars of PST on my camera gear. I have also saved significant dollars buying camera gear out of the US as well, but you do have to be careful with warranty conditions when you do that.

TheShadow
Advanced Member

Mysterious, pop can stove stashin', gps totin', overnighter virgin, wannabe tentmaker and foul weather wuss who rides a thumper to the trailhead with wonderdog Max to hike the Chilliwack Valley

Chwk
Canada

4910 Posts

 Posted - 06/12/2010 :  10:42 AM  Show Profile  Reply with Quote
The Liberals said that the HST would be good for business...they probably didn't realize that they meant Washington business!

Aces, during the past 2 years, we've done a LOT of shopping in Bellingham and Mt. Vernon and I have yet to pay a penny in duty! We have pulled hundreds of dollars in merchandise out of Joe's Sporting Goods, Yeager's, Wal-Mart and Costco.
We are often OVER our personal exemption limit, but the trick is not to be TOO greedy...and always mix in some grocery items, they don't count!
And we don't save "a little"...we save a LOT. Most items are AT LEAST 20% cheaper.
I can buy a BFK (Kershaw Outcast) at Wholesale Sports in Mt. Vernon for $79. I have not seen it ANYWHERE in Canada for less than $120.
http://www.m4040.com/Knifemaking/REVIEWS/FieldBladeReview-KershawOutcast.htm


So how does this sales-tax exemption work...do you tell the cashier that you're from BC before they ring it through or do you have to apply at the border?


Edited by - TheShadow on 06/12/2010 10:48 AM

ShadowChaser
GPS Geek

Trail cuttin, GPS packin bushwhacker, wiki hike compilin, who is now Hope-less


2543 Posts

 Posted - 06/12/2010 :  10:46 AM  Show Profile  Reply with Quote
You tell them and show your ID

Arnold
Intermediate Member


Port Moody, BC
Canada

545 Posts

 Posted - 06/12/2010 :  10:57 AM  Show Profile  Reply with Quote
quote:
Originally posted by Kathryne
Personally, I find it much easier to shop in Alberta. I have saved hundreds of dollars of PST on my camera gear. I have also saved significant dollars buying camera gear out of the US as well, but you do have to be careful with warranty conditions when you do that.



Technically, you're supposed to pay PST even if you buy out of province. I was surprised to find this out myself recently as I always thought out of province purchases are exempt from PST. Apparently in BC this trick doesn't work and you "have to" pay the PST once your goods come to BC. There is actually a special government form that you fill out and mail them. They even explain how good it is to pay your PST, and that everyone should do it, because it is just so awesomely good! Woah, wonder what moron buys that load of crap.

Arnold
Intermediate Member


Port Moody, BC
Canada

545 Posts

 Posted - 06/12/2010 :  11:01 AM  Show Profile  Reply with Quote
quote:
Originally posted by AcesHigh

Right... And coming back to Canada you have to pay duty.
You save very little but "Some" in the end.



Oh, you save lots, depending on what you're shopping for. Some items are 2x more expensive in Canada than in US. Photo gear used to be about 1.6x more expensive here, and you could really save a lot there, but now it's a lot closer. I never had to pay duty, nor GST/PST when bringing in things myself. If you have your stuff mailed to you through Canada Post, then you usually don't get charged any tax too. Even if the price is about the same, you could save a lot if you don't have to pay the sales tax.

Summit Seeker
Junior Member


Whistler, BC
Canada

422 Posts

 Posted - 06/12/2010 :  6:10 PM  Show Profile  Reply with Quote
The last set of tires I bought in the states were close to 50% off of what I would of paid here. I got quotes from close to a dozen tire retailers here upwards of 1300 + tax, not including installation. I bought the same set in Montana for $750 installed. This is a couple years ago when the Canadian dollar was at 1.05 US - so some big savings there.

If you shop around down there, there are definitely big discounts to be had. The "Canadian Markup" is ridiculous sometimes.
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Kathryne
Intermediate Member



925 Posts

 Posted - 06/12/2010 :  10:34 PM  Show Profile  Reply with Quote
quote:
Originally posted by Arnold

quote:
Originally posted by Kathryne
Personally, I find it much easier to shop in Alberta. I have saved hundreds of dollars of PST on my camera gear. I have also saved significant dollars buying camera gear out of the US as well, but you do have to be careful with warranty conditions when you do that.



Technically, you're supposed to pay PST even if you buy out of province. I was surprised to find this out myself recently as I always thought out of province purchases are exempt from PST. Apparently in BC this trick doesn't work and you "have to" pay the PST once your goods come to BC. There is actually a special government form that you fill out and mail them. They even explain how good it is to pay your PST, and that everyone should do it, because it is just so awesomely good! Woah, wonder what moron buys that load of crap.



Yep, I know! Apparently Alberta does not have a reciprocal agreement with BC like Ontario does, so they rely on the honesty of the purchaser. I always pay my PST like a good taxpayer.
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AcesHigh
Advanced Member


Hope, BC
Canada

7100 Posts

 Posted - 06/13/2010 :  01:01 AM  Show Profile  Reply with Quote
So if I visit USA, and buy new tires, and show the clerk my ID, does she record my name etc.?

kar-VROC
New Member



79 Posts

 Posted - 06/13/2010 :  09:18 AM  Show Profile  Reply with Quote
my experience from having an AB residence is that getting the exemption and what they record if you do get it, depends on the retailer. I don't think they've taken my info more than once. It's sort of like if you buy stuff for kids here in BC - the retailer is supposed to take your info to give you the exemption, but I don't know if most do.

I didn't know that it was a gov't thing and in the past I would ask at the counter if I could get the tax removed since I lived in AB - it was about 50/50 as to if they would do it for me. I think it was mostly that the clerks themselves did not know. Now that I know it's a gov't thing, I will definitely be insisting on it.

jeffhan
Junior Member


Vancouver, BC
Canada

291 Posts

 Posted - 10/08/2010 :  11:29 AM  Show Profile  Reply with Quote
Hi People! check the revenue of Washington state website and this link clearly tell us BC resident are NOT eligible for tax exemption at this moment!

http://dor.wa.gov/Content/FindTaxesAndRates/RetailSalesTax/Nonresidents/default.aspx
(click the "Important information about the nonresident exemption"):
quote:
Preliminary Injunction

The Skagit County Superior Court has issued a preliminary injunction requiring the Department of Revenue to advise retailers to not grant the nonresident sales tax exemption to residents of British Columbia, Nova Scotia, New Brunswick, Newfoundland and Labrador, Ontario, and Quebec, Canada. This advice will remain in effect pending the final determination of the pending litigation.


And as i know, no vender in WA is giving BC resident tax exemption except Walmart right now!

LongShadow
Founder

Big pack hiker who sleeps with bears in tent and falls on slippery logs

Langley, BC
Canada

7647 Posts

 Posted - 10/08/2010 :  1:36 PM  Show Profile  Reply with Quote
quote:
Originally posted by jeffhan

Hi People! check the revenue of Washington state website and this link clearly tell us BC resident are NOT eligible for tax exemption at this moment!

http://dor.wa.gov/Content/FindTaxesAndRates/RetailSalesTax/Nonresidents/default.aspx
(click the "Important information about the nonresident exemption"):
quote:
Preliminary Injunction

The Skagit County Superior Court has issued a preliminary injunction requiring the Department of Revenue to advise retailers to not grant the nonresident sales tax exemption to residents of British Columbia, Nova Scotia, New Brunswick, Newfoundland and Labrador, Ontario, and Quebec, Canada. This advice will remain in effect pending the final determination of the pending litigation.


And as i know, no vender in WA is giving BC resident tax exemption except Walmart right now!



Yeah, we were told that a few months ago. Actually some WMT's aren't doing it either, just the ones closer to the border, and often you need to get some kind of approval from float manager there. Funny though, I was told that if I'm from Alberta I wouldn't be charged... Not sure I fully understand that one, not that I've looked into it either...

TheShadow
Advanced Member

Mysterious, pop can stove stashin', gps totin', overnighter virgin, wannabe tentmaker and foul weather wuss who rides a thumper to the trailhead with wonderdog Max to hike the Chilliwack Valley

Chwk
Canada

4910 Posts

 Posted - 10/08/2010 :  8:53 PM  Show Profile  Reply with Quote
quote:
Originally posted by jeffhan

And as i know, no vender in WA is giving BC resident tax exemption except Walmart right now!



...and they stopped that a while back, too!

MJB
Intermediate Member


Terrace, BC
957 Posts

 Posted - 10/08/2010 :  11:37 PM  Show Profile  Reply with Quote
We saved money buying in the states.
Thta's that. Brought over $150 of bike gear from Portland after a 4 day visit. Declared everything, paid nothing. In Northern BC - Easy $250+
Let small business in BC tell Gordo what a great idea the hst was as they loose basic revenue.

And maybe small business in BC should stop thinking they have a captive market.

Edited by - MJB on 10/09/2010 12:03 AM
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Farmer
Advanced Member

Outward Bound author of the Seinfeld Thread, who builds his own snowshoes

Troy, MT
USA

3125 Posts

 Posted - 10/09/2010 :  12:19 PM  Show Profile  Reply with Quote
I was talking to my dad last night. Looks like it will be chaper or a similar price for me to start shipping him car parts when he needs something (especially if it is something small, like the O2 sensor he just bought for less than a third of what it would cost in canada) than it would even be for him to order them for store pickup in bellingham and drive down to pick them up. Especially because there is no sales tax here in montucky. We get ripped off on so many things in canada that it isn't even funny.

He also said that since that since gordo lowered the legal limit to 0.05%, and there is HST to pay at the bars, it has really killed a lot of their buisness, because now, you are legally "drunk" if you stop to have a beer or two with your buddies after work. Hypocrite.

alpalmer
Intermediate Member


ALBANY, OR
USA

588 Posts

 Posted - 10/10/2010 :  2:06 PM  Show Profile  Reply with Quote
someone already mentioned this, but do check ahead with retailers before expecting them to be able to handle "sales tax exemptions". US Out of state residents used to be able to just show a drivers license when shopping in Washington and then would not be charged the sales tax but many businesses got burned by the State government trying to collect anyway so they stopped any exemptions whatsoever. The concept sounds simple but it may not end up that way.

Grimgrak
New Member


Vancouver
Canada

55 Posts

 Posted - 05/09/2011 :  10:55 PM  Show Profile  Reply with Quote
Last time I was in chapters the books were still marked with canadian prices being worth 60 cents to the US dollar. I dont see how they can stay in business.

blondie
Junior Member


North Vancouver, BC
Canada

252 Posts

 Posted - 05/10/2011 :  09:06 AM  Show Profile  Reply with Quote
FYI, though this is an old thread. The exemption was effectively revoked in July 2010.
http://www.bellinghamherald.com/2010/07/16/1529121/judge-suspends-sales-tax-exemption.html

ErikF
Starting Member


Vancouver
4 Posts

 Posted - 06/10/2011 :  12:43 PM  Show Profile  Reply with Quote
I just brought a kayak in from the 'states and to my surprise paid not HST AND duty, but HST on the combined value of the item PLUS the duty. In other words, they charge the 12% harmonized sales tax on their own (in this case 9.5%) duty! Crazy. Canada Border Services confirms that it is Federal government policy to charge HST on the import duty paid; effectively a tax on a tax. This could add up to quite a bit more on an expensive item.

Does anyone know if this was policy at some point for the GST? I don't think so, because I imported commercially for years, and even when we had the old FST (13.5% if you can remember that far back), the duty and tax were applied separately to the value of your shipment.

troutbreath
Junior Member


Newton, bc
Canada

282 Posts

 Posted - 06/10/2011 :  2:04 PM  Show Profile  Reply with Quote
I go to Hellberta often and hold off buying stuff here before checking prices there. With the convoluted vote on the HST coming up no doubt I'll continue doing that.
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