HST: Electrical Rebates Expected to Start in August

Finance Minister Don Downe said payments for the HST rebate on home heating and lighting will start showing up on electrical bills next month. The rebate will apply to all electricity used in homes, including electricity for heating, cooking and other electrical appliances during the period Nov. 1, 1997 to March 31, 1998.

"We have been working closely with Nova Scotia Power and the smaller municipal utilities to deliver the rebate as quickly as we can," said Mr. Downe. "We understand that Nova Scotia Power can start showing the credit on all the bills that go out after Aug. 15, 1998. The smaller municipal utilities will be not far behind."

The Department of Business and Consumer Services has developed procedures to rebate the taxes paid by consumers who no longer have an electrical bill. People who had an electric bill in this period, but do not have one now can apply to Business and Consumer Services for a rebate after Aug. 15 by calling 1-800-787-0889.

"We know some people had electrical bills last winter but now have left the province or moved into accommodations where the electricity is included in the rent," said Mr. Downe. "Our intention is to handle those rebates directly through Business and Consumer Services."

The department is receiving lists of customers who have discontinued service to ensure the rebates are not paid out twice.

Landlords in the province that include electricity in their rents may also apply for a rebate from Business and Consumer Services. If they absorbed the increased electrical cost and did not raise rents between April 1, 1997 and March 31, 1998, these landlords will be allowed to keep the rebate. If rents were raised in this period, the landlords will be required to receive the rebate in trust for their tenants and pass the benefit on to the tenant.

The rebate will be calculated as a percentage of rent paid. The landlord may deliver the rebate directly, or provide a list of tenants to have Business and Consumers Services administer the rebate.

The five per cent rebate is being paid out under the terms of the Expenditure Control Act, which states a surplus must be used to either pay down debt, reduce taxes or do both. In his June 4, 1998 budget address, Mr. Downe announced the province would use the $38.5 million surplus from the 1997-98 fiscal year to do both.