Markham programs and services fees and the HST

The new provincial Haromonized Sales Tax (HST) comes into effect on July 1, 2010. The HST is a combination of current GST and PST.

The 13 per cent HST will be applied to most goods and services that previously carried the GST.

The Town of Markham, like all Ontario municipalities, must comply with recent legislation on the HST starting July 1, 2010 to certain programs and services offered by the town.  

Services and Programs where HST Applies:

• Adult and senior memberships
  
• Adult and senior recreation programs
  
• Facility, ice and pool rentals
  
• Sports field rentals
  
• Cemetery plots and services
  
• Markham Theatre of Performing Arts tickets
  
• Varley Art Gallery tickets
  
• Markham Museum tickets
  
• Admissions and passes
  
• Development and Planning fees 

Services and Programs that are Exempt from HST:

• Property taxes
  
• Building related permits
  
• Licences
  
• Recreation programs for children under 14 years of age
  
• Fines and parking tickets
  
• Development Charges

The province has included transition rules to help move from the current tax system into the new HST.

The transition rules are as follows:

Now to April 30, 2010

• If you make a payment in full for services/programs before May 1, 2010, but receive the services/program after July 1, 2010, then the GST rate of 5 per cent will apply.
  
  
  • e.g. if a fitness membership expires June 30, 2010, and you pay the next year's membership in full before May 1, 2010, it will only be subject to 5 per cent GST.
    
    
  • e.g. if you make a payment in full for a sports field, or ice rental before May 1, 2010, for bookings that occur after July 1, 2010, it will only be subject to 5 per cent GST.
    

May 1 to June 30, 2010

• If you make a payment for services/programs that occur after July 1, 2010, the 13 per cent HST will apply.

• Exception: If you make a payment for a service or program that will be 90 per cent complete or delivered prior to July 1, 2010, then 5 per cent GST will apply.
  
  
• Exception: For prepayment of cemetery plots and services 5 per cent GST will apply

After July 1, 2010

• HST at 13 per cent will be added to all applicable services/programs.

More information on the HST is available on the following websites:

• Canada Revenue Agency 
  
  
• Ontario Ministry of Revenue