The City of Charlottetown is still waiting for word from the province about whether it will get any rebate from the new harmonized sales tax (HST).
The HST is slated to come into effect on P.E.I. on April 1, 2013.
Some municipalities across Canada will be getting a full rebate of the GST portion of the HST and a percentage back from the provincial portion for purchases related to exempted services.
On Tuesday night, city council passed a resolution to increase the rates at its three parkades as well as on the parking meters because parking is subject to the new HST.
The city is operating under the assumption that HST will apply and that it isn’t getting a rebate because it hasn’t been told otherwise.
Scott Ryan, manager of finance for the city, says the city is preparing to include HST in the parking fees.
“The city has not been told it will receive an HST rebate,’’ Ryan said Thursday. “It is the province’s decision and the municipality hasn’t been notified yet. We do not know when the announcement will come from the province.’’
If the parkades and meters end up being exempt from HST because of a rebate, Ryan says the city will not add HST to the base parking rates.
On Tuesday night, Deputy Mayor Stu MacFadyen cited the HST as the main reason why rates are going up at the Queen and Fitzroy parkades and on the meters.
Ryan said the base rate at the Pownal Parkade is increasing to bring that in line with the other two so that people are paying the same parking rates across the board, regardless of which parkade they are using.
“This is because all of the parkades now offer the same services and are up to the same standards and level of demand.’’
Ryan said the same rule applies to the Pownal Parkade if the city is exempted.
“The city will not add HST to the base rate.’’
As for the parking meters, they only take toonies, loonies and quarters so in order to cover the HST, the meters would increase by 25 cents. Metres don’t take dimes or nickels.
Ryan said if the meters also end up exempt, HST will not be added to the fee.
Rates are scheduled to rise, beginning Jan. 1, 2013.