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Washington Sales Tax Exemption Halted - No Tax Free yet
From CBC:
A sales tax exemption for B.C. and Ontario residents shopping in Washington State that was scheduled to take effect Thursday has been blocked.
A state judge has put a temporary halt to the planned exemption after applications by lawyers for the city of Bellingham, Washington, and Whatcom County, near the Canadian border south of Vancouver.
The judge's order puts a halt to the exemption throughout the state.
The issue will be back in court July 9 when state officials are expected to argue in favour of the exemption.
State revenue officials announced June 8 that residents of the two provinces would become eligible for a sales tax exemption due to the HST.
Washington state law allows a sales tax exemption to residents of jurisdictions that impose a sales tax of three per cent or less. As the HST in B.C. and Ontario technically eliminates provincial sales taxes, residents of those provinces were to become eligible.
But in Washington State, the 6.5 per cent state sales tax is accompanied by a county sales tax of up to three per cent.
Bellingham and Whatcom County officials said that the state-imposed exemption would cut too deeply into their tax revenues.
Washington State has long been a favourite shopping destination for B.C. residents.
Read more: http://www.cbc.ca/canada/british ... .html#ixzz0sP0RtqJp
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