Tony Gioventu
Province
Dear Condo Smarts: Our strata corporation recently signed up with a gas broker to secure a stable rate for our utilities. In the broker’s review of our files they discovered that the corporation has been charged PST by Terasen and have disputed the charge on our behalf. We have filed an appeal with Terasen and received a refund for four years, which worked out to over $9,000 in our case.
I also own a strata lot in a commercial/residential mixed building with the same problem but Terasen has deemed it a commercial building and cannot refund the PST. The commercial strata lots pay GST on their strata fees but the residential owners do not. So why do we have to pay PST on residential gas supplies?
— TO, Richmond
Dear TO: You are correct. Residential use of electricity, natural gas, coal and fuel oil is exempt from PST. The design of a joint residential/commercial strata has an impact on the exemption. There is a requirement for clear isolation of utilities and separate accounting. This could exist in a commercial/residential strata where two separate sections are created, with their own separate accounting and isolated utility services, specifically identifying the residential strata lots as a separate legal entity with separate metering.
There are two utility charges that strata corporations need to check. The first is hydro. Initially, the hydro account is set up as commercial with the developer. Make sure it has been converted to residential when the strata corporation is created in order to get the best rates and ensure you are not paying PST.
The second is gas. Review your residential accounts and ensure your strata is not paying PST. If you are paying PST, file a claim with Terasen immediately demanding a refund and that the account be corrected. You may also want to go to the government website to file a claim for a refund. Go to www.rev.gov.bc.ca/individual.html and follow the links through Consumer Taxes and PST Exemptions. To file a claim for a refund go to the consumer section on refunds.
Tony Gioventu is executive director of the Condominium Home Owners Association (CHOA).
E-mail: [email protected]
© The Vancouver Province 2008