Vancouver arts groups grapple with HST referendum

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As the public is being asked to weigh in on the future of the HST, some in the arts and nonprofit sectors say they are worried about a backlash from the province should the tax be repealed.

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“I’ve heard there’s a bit of concern that, if that [HST] revenue is no longer coming into the province, what further cuts will they make? And what won’t get funded?” said Amir Ali Alibhai, executive director of the Alliance for Arts and Culture, referring to cuts to gaming grants and to the B.C. Arts Council budget.

Premier Christy Clark has not yet appointed the head of her promised review of community gaming grants, which B.C. Association for Charitable Gaming president Susan Marsden believes is a stalling tactic until after the HST referendum. “I think that if the HST fails in their [the provincial government’s] eyes—in other words, if they don’t get what they want—they’ll feel they’re in a financial crisis and then they might even use that to sort of put us on the back burner,” she said.

When it comes to the HST debate, opinions are mixed. Howard Jang, executive director of the Arts Club Theatre Company, said he plans to vote in favour of keeping the tax.

“Certainly, we were concerned as to what the impacts could be in terms of ticket sales and so forth [when the HST was introduced],” he said. “What we’ve learned to date is that that hasn’t been a significant reason for anyone to say ”˜I’m going to buy’ or ”˜I’m not going to buy.’”¦ On the business side of it, we actually come out ahead because we’re able to get a significant rebate on the entire tax, not just the GST anymore.”

Heather Redfern, executive director of the Cultch, said she will be voting to repeal the tax. “Our tickets weren’t subject to PST, but they are subject to HST, so the tax on tickets went from five percent to 12 percent,” she noted. “That definitely has an impact—it makes people think you have really expensive ticket prices when actually you don’t. We tend to advertise them as an inclusive price, because that’s what people prefer.”

Redfern said the Cultch was recently informed its $40,000 gaming grant would be cut in half this year, and its bingo revenue, which is being phased out, was reduced by $10,000 this year. “It has meant for us, anyway, we need to earn more at the box office, so our prices are going up. Between the HST and funding cuts, gaming funding cuts and funding cuts to the B.C. Arts Council, they [the provincial government] are taking more and they’re giving less.”

Redfern said she is not concerned about the possibility of an HST repeal triggering deeper cuts to arts funding. “The point is that they increased taxes and they already cut funding,” she said. “You know, pretty soon there’s not much left to lose here.”

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The HST is good policy
“Certainly, we were concerned as to what the impacts could be in terms of ticket sales and so forth [when the HST was introduced],” he said. “What we’ve learned to date is that that hasn’t been a significant reason for anyone to say ”˜I’m going to buy’ or ”˜I’m not going to buy.’”¦ On the business side of it, we actually come out ahead because we’re able to get a significant rebate on the entire tax, not just the GST anymore.”

QFT. I wonder if theatre groups have to pay PST on props,costumes and set design like the film industry.

http://www.sbr.gov.bc.ca/documents_library/bulletins/sst_076.pdf
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Readertoday
What these charities should be more worried about is the fact that they can't claim the HST back like businesses can. They'd be better off with GST/PST at 12% and a cut in funding then they would be with a 10% HST on everything they need to buy to run the operation.
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The HST is good policy
@Readertoday

Glancing at the rules for non-profit organizations, theatres can get tax credits for major expenses like commercial leases, equipment rental and supplies if they charge HST on tickets like the Cultch does.

You can also get partial credits for other expenses - there are a lot of rules, but they are familiar with them anyway for their GST book-keeping.

http://www.cra-arc.gc.ca/E/pub/gp/rc4081/rc4081-10e.pdf

page 13.

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Island Man
Cut the handouts and Axe the HST...Vote YES
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Non-profit Worker
All three of these organizations, like all other charitable groups in the province, can claim a portion of the HST they pay as a rebate. Under the GST/PST system, charities could claim 50% of the GST they paid back, but they received nothing back from PST paid. Now, charities are reimbursed 50% of 5% of the HST, and 57% of 7% of the HST they pay. On the balance, the HST is a better deal for charities in BC. And if the HST is repealed, the province will be forced to pay back the $1.6 billion they received to implement the HST, leaving arts and other social profit organizations with a longer wait for much needed funding to be returned.
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Just Wondering
They'll cut funding for everything anyway because the province is in a mess. What we are really voting for here is democracy. We have to show this government and all who follow that we the people will not stand for cheap lying politics no matter what the cost. Even if we bring it back later on it will be under a negotiated agreement with the people to be a fare tax not the abomination it is right now with the burden it has placed on so many people. To allow this tax to stay is absurd to say the least and to say otherwise is in my opinion and I believe a lot will agree, self serving. Many people are being hurt by this tax but the Liberals would never understand it with their big raises of the past and windfalls in the future in the form of pensions.
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