Uncertainty Surrounds the Effects of the New Provincial HST Tax on Green, Energy Efficient Upgrades and Home Renovations According to the Georgia Straight, there is much confusion surrounding the new BC harmonized sales tax and its long term effects on green, energy efficient home building and renovations. The HST, which will take into effect July 1st, could possibly eliminate the exemption from the provincial sales tax (PST) for materials and equipment that is currently used to conserve energy.

Home builders and renovators in British Columbia do not fully understand how the elimination of the PST exemption on energy efficient appliances, materials and goods can lead to a healthier building industry in BC and there has been no clarification from the provincial BC government as to what will happen with these build green initiatives. Under the current system, energy efficient materials like thermal insulation and pre-manufactured windows, doors and skylights are exempt from the 7% PST tax as part of the built green, energy efficiency initiative of the BC provincial government. This PST exemption also applies to furnaces, boilers, and heat pumps if they are purchased or even leased for residential home purposes only. As part of the overall 2008 provincial budget, the BC Liberals also provided this 7% PST exemption on energy efficient appliances like washing machines (washer/dryer), fridge, freezers, microwaves, ovens, stoves and other appliances which was part of a $1 billion investment for various programs that would make construction in British Columbia more eco-friendly and environmentally sensitive to reduce our ecological footprint. All of these PST exemptions were suppose to remain in effect until March 2011. With the federal LiveSmart BC initiative for rebates on environmentally friendly goods with PST exemptions, this has created a much healthier living community and homes for homebuyers and residents. However, with the introduction of the BC HST 12% tax which combines the seven percent PST and the federal goods and services 5% GST tax, the BC government unfortunately even after announcing this new Harmonized sales tax has yet to table legislation on some rules and regulations moving forward on these green initiatives. Taking away the PST exemptions will definitely be a backward step in the new Vancouver and BC housing industry.

The BC Harmonized Sales Tax is a step backwards when it comes to Built GREEN and LEED Designed Developments and Renovations
The recently announced BC HST will have a profound impact on the burgeoning green construction shift in British Columbia, leading many experts and analysts to predict a healthy drop in green renovations and development in the upcoming years. According to the latest 24 Hours article, the BC HST will thwart the green shift saying that the introduction of the British Columbia Harmonized Sales Tax will take the green construction shift in the wrong direction completely. The proposed BC HST will be applied to such green items as renewable energy systems, solar heating panels, hybrid vehicles/cars as well as bikes, which will see a significant 7% hike in taxes compared to the current tax system. The David Suzuki Foundation has already presented its claim that the BC HST is taking the green shift in the opposite direction and will undermine years of progress. The final BC HST goods and services exemptions are not yet determined, but currently the increased taxes will certainly be applied to green products and services unfortunately.

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