Madawaska Volleyball & All-Sport Camp

2010-03-23
HST (Harmonized Sales Tax) Effective May 1st, 2010

We would like to update you about a generally boring topic however one that is important to your 2010 registration....taxes!

As you may already know, the government has introduced a new tax called the HST (Harmonized Sales Tax). Early implementation of this new tax will begin on May 1, 2010.

We have read the legislation and consulted with government officials. Based on the information we have gathered, it is our understanding that the information presented here is accurate and up to date. There are several issues created by this new tax for camp families. Here is what we know.

Some background:

For most industries, a 13% HST is really only a name change (or harmonization) for what used to be (i.e. 13% HST = 5% GST + 8% PST). For camps in Ontario, however, this is not the case. For many years, residential summer camps have been specially treated under PST legislation, and camp families have been paying a special 3% PST instead of the usual 8%. That is to say, camps have been subjected to a total of 8% in tax (not 13%). Unfortunately, despite our best efforts and the collective efforts of the Ontario Camping movement, HST legislation refuses to continue to acknowledge camps as special.

Q1. Will Madawaska Camps have to collect HST for the summer of 2010?

A1. We must answer this question in 2 parts:

a) For sessions registered and paid for by April 30, 2010, no HST will be charged. (The tax rates will remain at 5% GST and 3% PST for a total of 8%). These are the taxes already included in your camp fees.

For full balance July 1st scheduled credit card payments

Your payment will be moved to April 30th.

For post-dated cheque payments that extend beyond April 30

We will call you sometime this month to discuss your particular payment.

For those already scheduled to pay their full balance by April 30

Nothing Changes.

b) For changes or additions made after April 30, 2010 (and this includes extensions), we will be required to charge and collect the new HST. Please note that this translates into an effective increase of 5% (13% instead of 8%) to camp fees that we are required to collect on behalf of Canada Revenue Agency and remit to them. We do not keep any part of this increase.

Q2. Will Madawaska Camps have to collect HST for the summer of 2011?

A2. In 2011 and beyond, all residential camp fees will be subject to 13% HST.

Please contact the camp office should you have further questions.