With the deadline approaching for submitting HST referendum ballots approaching, we are getting a lot of questions regarding the HST referendum and bicycles from people who are undecided. Here is how the HST affects bikes.
At present bicycles are taxed at 12%. The provincial government has proposed to drop the HST to 10% between now and the year 2014.
Under the previous PST/GST taxes (that the referendum proposes to change back to), most things you would pay for in a bicycle shop would be taxed at only 5%. Bicycles, safety equipment, shop labour, and more would be taxed at only 5%, with only a small number of items being taxed at 12%. Even if the HST does drop to 10% over the next few years, as has been proposed, bike customers will be paying more tax than they would if we reverted back to the GST/HST.
To vote in the HST referendum, Elections BC has to receive your ballot on Friday, August 5th (merely post-marked August 5th is not enough, it must arrive in their offices by August 5th). If you have any further questions about how the HST affects bicycles, our staff would be happy to answer them.