Region of Waterloo writes letter on cycling

Since the Province of Ontario made changes in 2007 to the Retail Sales Tax Act that exempted
bicycles under $1000 from the Provincial Sales Tax, the Province and its Municipalities have gained momentum in promoting cycling as an active transportation choice. The Provincial Sales Tax (PST)exemption is slated to end on December 31, 2010, and it is unknown how the exemption will be
handled under the new Harmonized Sales Tax (HST). Given the success of the program to date
and the importance of encouraging cycling activity, the Regional Cycling Advisory Committee is
recommending that Regional Council encourage the Province to continue the retail sales tax
exemption for cycle purchases under the new HST and past the current program’s end date.
Regional staff support this recommendation and have added a recommendation that, should the
exemption not be extended, the Province uses all revenues from the Harmonized Sales Tax on the
sale of cycles to fund cycling infrastructure projects.