HST Cross Border Rebate

VICTORIA -- As of July first, British Columbians will get an instant tax rebate when they shop in Washington State.

It's all thanks to the HST. According to Washington State law, if you live in a province or state that pays less than 3% sales tax, you don't have to pay state taxes.

Washington considers the HST a 'value-added' tax, not a sales tax, so British Columbians don't have to pay. The tax break doesn't apply to hotel stays or dining out in restaurants.

To be tax exempt, all you have to do is show your driver's license at the till.

NDP Finance Critic Bruce Ralston says the loophole is bad for small business in BC, and it's another reason the Liberals should get rid of the tax altogether.

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