B.C. shoppers targeted in U.S. sales tax debate

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BELLINGHAM (NEWS1130) – A push is underway to overturn a decision to give Lower Mainland shoppers a sales tax exemption when they visit Washington State.  Politicians think the loss of tax money would be devastating for Whatcom County.

Leaders in the County are consulting their top lawyers in a bid to challenge Governor Christine Gregoire over the state’s decision to give a sales tax break to shoppers from B.C.

The move comes at a time when the dollar is near par and merchants near the border are hungry for Canadian business.  However, Whatcom County Executive Peter Kremen is telling Bellingham radio station KGMI that tax break is premature and flawed.

He’s hoping to find a legal argument that can hold water – the fear is the loss of tax revenue from Canadians could really hit them hard.  Kremen notes Washington State shoppers won’t get any break when they come north – once the new Harmonized Sales Tax is in place July 1st.

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