Harmonized Sales Tax
Municipal Services and the HST
As announced in the 2009 Ontario Budget, Harmonized Sales Tax (HST) will replace the Provincial Sales Tax (PST) and the federal Goods and Services Tax (GST), effective July 1, 2010.
The provincial portion of the HST will be 8 per cent and the federal portion will be 5 per cent, for a combined rate of 13 per cent. As a general rule, any product, program or service that is currently subject to GST will be subject to HST as of July 1, 2010.
Municipal service charges that are currently exempt from the 5 per cent GST will remain exempt from the HST. Examples include:
- Sports, recreational, leisure learning programs designed for age 14 years and under,
- Public transit,
- Library cards,
- Water/wastewater services,
- Licences and permits,
- Pet registration,
- Building permit fees,
- Sign fees,
- Zoning and planning applications,
- Development charges,
- Landfill tipping fees,
- Junior Citizens Day Care,
- Pioneer Manor Long-Term Care Facility
- Property tax.
Municipal service charges that are currently subject to the GST will be subject to the 13 per cent HST, effective July 1, 2010. Examples include:
- Sports, recreational, leisure learning programs designed for age 15 and over,
- Facility rentals,
- Ice rentals,
- Pool rentals
- Sports field fees,
- Equipment rentals,
- Fitness memberships,
- Private lessons,
- Public skating and Shinny Hockey,
- Ski passes and lift tickets,
- Public swimming fees,
- Cemetery plots and interment.
Parking fees and Sudbury Community Arena event ticket handling charges will not increase in 2010.
Fees paid or invoiced in full during the months of May and June will have HST applied to the portion of the program that is delivered after July 1, 2010. GST will apply to the portion of the program delivered during May and June.
Programs or contracted agreements that are at least 90 per cent complete by June 30, 2010 will be subject to GST only.
For fees effective July 1, 2010, please see By-Law 2010-27F (pdf).
For more information about the HST, please visit the Ontario Ministry of Revenue web site at www.rev.gov.on.ca