HST: A quick guide to the Harmonized Sales Tax

- What is the HST?

The Harmonized Sales Tax, scheduled to start July 1, combines the seven-per-cent provincial sales tax and the five-per-cent federal GST into the 12-per-cent HST.

- How will it affect you?

The sectors most affected will be for goods and services that were formerly exempt from the seven-per cent PST -- the tax rate jumps from five to 12 per cent. Some examples of where you'll see a jump from five to 12: restaurant meals, realtor fees and the value of a sold home over $525,000 and home renovations, repairs and maintenance.

- How does that affect the B.C. government?

The government says the HST is needed to encourage new business and help existing businesses, and will result in a healthier economy.

Victoria will receive $1.6 billion from the federal government for adopting the HST, and just received the first $250 million on March 31.

But the B.C. Liberals are getting pounded in the polls, with many respondents saying the main reason is the HST -- which the government promised not to bring in during last year's election.

- Where does it stand now?

The HST law is being debated in the legislature, and a group looking to overturn the tax started its citizens' initiative on Tuesday.

- How does the citizens' initiative work?

Bill Vander Zalm and canvassers have 90 days from April 6 to July 5 to sign up 10 per cent of registered voters in 85 B.C. ridings. The petition includes a draft bill to overturn the HST.

- What happens next?

If enough signatures are collected and verified, the select standing committee on legislative initiatives introduces a draft law to end the HST in the legislature or holds a provincewide referendum in September 2011 -- but neither is binding on government.

(prepared by Ian Austin/Vancouver Province)