B.C. homeowners are holding off on renovations until the HST referendum in June, but even if voters reject the tax, it could be more than a year before it's off the books.
Premier-designate Christy Clark has committed to moving the referendum on the harmonized sales tax up to June 24 from the original date of Sept. 24.
But even if voters decide to eliminate the tax, the wait for the HST to disappear might be longer than people think, according to Finance Minister Colin Hansen.
"In the agreement we have with Ottawa, there is actually an 18-month notice period," he said.
Hansen could ask the federal government to waive the notice period, but removing the tax would still take many months.
"To actually re-establish a provincial sales tax in British Columbia would mean that we would have to re-hire about 300 public servants to administer the provincial tax system. We would have to re-register 10s of thousands of businesses that would have to once again be collecting the provincial sales tax," Hansen said.
And if consumers are hoping the HST will be reduced even if British Columbians vote to keep it, Hansen says that the agreement with the feds makes that impossible until July 2012.
Bryan Hayes at West Coast Windows says that British Columbians are already holding on to their money while they wait for the referendum, making for a slow spring for contractors.
"They hesitate to want to invest today and then see the tax removed afterwards, and have spent potentially seven per cent more than they think they might have to," he told CTV News.
If the HST remains in place for the more than a year after the referendum, the situation could deteriorate.
"That would be the worst thing, I think. That would be even worse than having to wait for the referendum," Hayes said.
For now, West Coast Windows is running a promotion, promising they'll pay the HST.
With a report from CTV British Columbia's Shannon Paterson
