Tax discount in Washington

[FireKari 4]

http://ca.news.yahoo.com/s/cbc/100608/canada/canada_britishcolumbia_bc_washington_state_sales_tax_exemption_1

B.C. and Ontario residents will not have to pay sales tax in Washington state starting July 1, the state government announced Tuesday.

The savings would amount to as much as 9.5 per cent in some areas of the state, which has a basic sales tax of 6.5 per cent. Individual counties can add their own sales taxes of up to three per cent.

Washington state law allows a sales tax exemption to residents of jurisdictions that impose a sales tax of three per cent or less.

Residents of B.C. and Ontario previously did not qualify for the exemption but both provinces are adopting a harmonized sales tax July 1, which technically eliminates provincial sales taxes.

The state's 'non-resident sales tax exemption' will apply to purchases of goods in Washington for use outside the state, the state's Department of Revenue said in a news release.

"The exemption applies only to tangible personal property and does not apply to lodging, meals, or other retail services that are provided in the state," the release said.

Visitors from B.C. or Ontario to Washington need to show proof of residency, such as a driver's licence or passport, to get the exemption.

The move is expected to entice shoppers south, especially in communities close to the U.S. Vancouver is about 30 kilometres from the border.

People who live in Newfoundland, New Brunswick and Nova Scotia, which already have the HST, and Alberta and the three territories, which have no provincial or territorial sales taxes, already don't have to pay the tax in Washington.