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01/07/2010 -
Washington state recently ruled that its sales tax will follow apply to all shoppers, regardless of nationality, when they go to swipe at credit card machines.A proposed sales tax exemption for British Columbia and Ontario who shop across the border has been temporarily halted until July 9 by a state judge after receiving applications from lawyers representing the city of Bellingham, Washington and Whatcom County, located near the Canadian border, CBC News reports.
In early June, state revenue officials announced that because of the approval of the Harmonized Sales Tax in these provinces, residents would be eligible for the exemption. By state law, Washington allows a sales-tax exemption to consumers from areas which impose a local sales tax of 3 percent or less.
Bellingham and Whatcom County are protesting the exemption on the grounds that it would harm local retailers' tax revenues.
The HST, which combines the 5 percent goods and services tax with local retail sales taxes, went into effect for Canadian residents on Thursday.
