Councillors here are wondering if a tax credit might be the answer to offset the impact of the HST on recreation and leisure activities for children.
Recent finance committee minutes noted that the introduction of the Harmonized Sales Tax resulted in a cost increase for leisure activities in the township, particularly with respect to children’s activities.
Committee chairman Dan Yake suggested a resolution be presented to council proposing that the provincial government introduce a tax credit similar to the federal tax credit for the cost of registering children in recreational activities.
“This tax credit would be an alternative to the exemption of these activities from the application of the HST.”
Yake said that last month, council supported a motion regarding having the HST?removed from particular leisure or recreational activities.
“That 8% is costing families more money to get involved in recreational activities such as hockey and baseball.”
The original resolution asked that the province remove the 8% from recreation and culture activities.
However, Yake said that in any discussion he’d had with members of the government over the past few months, “It certainly doesn’t look like they’re going to back off that 8% on anything.”
Discussion with township Treasurer John Jeffrey led to a different idea.
Instead, of asking the 8% to be removed, they ask for a tax credit in a similar amount to the federal tax credit for enrolling children in recreational and cultural activities.
The federal government introduced the Children’s Fitness Tax Credit in 2007, to acknowledge the importance of physical activity and its effect on better overall health. The credit provides parents with a non-refundable federal income tax credit based on eligible fitness expenses paid to register children in prescribed programs of physical activity.
Further, the request would be to have that implemented for the 2010 tax year.
“We’re asking the province to implement this and we’re asking municipalities to support this.”
Yake said the motion will be sent to all municipalities in the province and letters sent to the Ontario Premier Dalton McGuinty.
Mayor Mike Broomhead said the timing is perfect, in conjunction with the AMO?conference in Windsor.
“We can do some lobbying while we’re down there.”
