First impressions Northwestern snowboarders steal. the show at — southern boarding contest\SPORTS B12 Deja vu? Thornhill faces renewed pressure to join Terrace or incorporate | We are one | # The annual potluck : dinner brings the community together \NEWS A5 Saturday\COMMUNITY B4 $1.00 plus 7¢ GST (51.10 ptus 8¢ GST outside of the Terrace area) “VOL: 15.NO, 4¢ Auditors nail district for uncharged GST By JENNIFER LANG THE SCHOOL district is fighting the tax man over a $25,000 bill it received for failing to collect the federal GST on the sale of pizza slices, hot dogs and cans of pop. The district failed to file the proper forms that would designate each school as a separate entity for GST purposes. It’s money individual schools or clubs raise in order to purchase sup- plies or help offset travel expenses for sports teams or performing arts groups. _www.terracestandard.com So when GST auditors took a fook at the period beginning July 1, 1999 and ending Dec. 31, 2001, they asses- sed the district as a whole-when it came to individual fundraising activi- ties at schools. On Nov. 2, 2002, Coast Mountains | district officials were shocked: to re- ceive a bill from the Canada Customs and Revenue Agency for $25,998. ’ The federal government charged the district $21,794 in unpaid GST — plus another $4,204 in penalties and inter- est, The auditors ruled schools should have been charging seven per cent GST on sales of pizza slices, cans of pop and juice boxes and other items sold throughout the year to raise money. School canteens were also included in the assessment. - Broken down by year, the Ost: as- . sessment means schools and clubs raise @ little more than. $126, 000: a year for various activities. One of the most visible form of. schoo! fundraising activities — students. selling chacolate bars door-to-door —is ~ GST exempt because the bars sell for: under $2 each. The $21,794 bill has been paid. ‘But. secretary-treasurer Marcel. Georges ©. said the district has filed a notice of. - objection, saying it intends’to appeal’: tS Wednesday, February 19, 2003 — | Tax man chases school pizza, pop | terest charges. a . "We still believe they’re all separ- ate entities,” Georges said. The. district is still waiting to hear back-from. the federal government. | Georges suspects other school. dis- tricts in rural areas may be in the same boat, but likely not large urban districts. where schools raise huge ‘amounts of money, | “Meanwhile, steps have “already “been taken to ensure local schools . don’t have to collect GST on fundrais- ‘ing activities. - ‘Mindy Gansen,.an accountant at “the: ‘school district, said the ‘district has how filled in all the’ proper. tax ‘forms parate entity for GST purposes. In order to qualify as a “small sup- plier division”, annual sales and reve- nues must be $50,000 or less — a thres- hold that only applies to public service bodies like schoois. (For small busi- nesses, for example, the threshold is $30,000). The district as a whole exeegded the $50,000 mark but no individual school did. That means they can cach raise up -to $50,000 a year without collecting GST. But they will now have to pay ( GST on the supplies they use for those fun- draising activities. - Roads key to aid for regions Premier unveils~: ‘heartlands’ plan By JEFF NAGEL ~~ A DRIVE to fix northem roads , and build new ones is the cor- nerstone of the provincial gov- ernment’s new plan to rescue rural B.C. Dubbed the “Heartlands Eco- nomic Strategy’, it includes a pledge to spend $609 million over three years on rural and remote roads, The move comes in response to a series of reports that all agree the province’s rural regions-are in trouble while prosperity and growth has been concentrated in Vancouver and its suburbs, The vision was laid out in last week's throne speech that repeat- edly pledged to “open up” B.C. and a subsequent state of the pro- vince address by. premier Gordon Campbell. “For too long, governments turned their backs.on the north and our rural communities, and that’s about to stop,” said in the speech. “This really is a substantial change in attitude from the gov- ernment to rural and remote Brit- ish Columbia,” he added while visiting Terrace Friday. Money to pay for the road work will come from a 3.5 cent per litre increase in the provincial fuel tax, raising $200 million more per year. Much of the plan simply puts previously announced initiatives — such as assistance for coalbed - methane producers. —- under. the banner of the “Heartlands” strat- egy. ; Much is long-term in scope. The throne speech calls for a “booming” offshore oil and gas industry by 2010 and a doubling of the tourism industry by the same Gas tax THE PROVINCE'’s 3.5 cent per litre gasoline tax increase is under under fire from motorists and groups around the province. The increase, which takes ef- fect March |, was announced last week by premier Gordon .Camp-’. beil to raise money for a $200 million per year campaign of road construction. “1 think it’s ridiculous,” : said Terrace diiver Alice Clairoux AS she filled up Feb. 14.) "What does he care?” she de- ; Campbell the fine of $4,204 in penalties and in- LOCAL DRIVER Alice Clairoux was among the local motorists who weren't impressed about the idea of paying an extra 3.5 cents per fitre starting March 1. SARAH A. ZIMMERMAN PHOTO year. Skeena MLA Roger Harris | welcomed the plan, which he called the start of a comprehen- sive response to the calls to help tural B.C. “Those concerns have been identified as the. number one pro- ject and number one priority of government in rebuilding the - province,” Harris said. The throne speech also warned of more pain ahead as the pro- vince launches major forest tenure reforms, “These measures will not be easy, painless or welcomed by all,” it said. “Restructuring of this magnitude simply cannot be made without some short-term disloca- tion. But restructuring is needed now. It cannot wait.” A $275 million Forest Transfor- mation Fund will be set up to help workers, Harris predicts the reforms will mean an end to rules requiring timber be processed at specific mills, and a relaxation of rules re- quiring companies cut or else lose their wood, Some kind of cut control provi- sion will exist, he said, to prevent companies from buying up timber and sitting on it. : _ Harris said support pledged for the Port of: Prince: Rupert will translate into more aid for a con- tainer port there and for the drive to- build a cruise ship terminal there. Continued Page Ai2 increase riles motorists manded, noting Campbell is being driven by the RCMP since his Jan. 10 arrest for drunk driving in Hawaii. “He can’t drive any more anyway.” The provincial” fuel; tax sh “will rise from -11 ‘cetits.:to 14,5 cents per litre. That will bring _ total gas taxes to’about’30 cents per litre, once federal excise, aX. and GST is added, 3 ~The - Canddlan : Taxpaye ‘deration. reacted with’ alarrh,: say- : ing the province should. have. tn- cluded a sunset clause to elimi- nate the-tax hike after a set period of time. Critics said the gas increase will be hardest on lower -income +, drivers: Pra ee “The | West Vancouver | stocks’ broker who benefitted most from income tax cuts will hardly notice- a 3.5 cent a litre increase in the _ gas tax,” said BCGEU: president . ~ George Heyman. “But it! will hurt “a low-income single mother who , needs her car to get to work.” But Skeena MLA Roger Harris supported the fuel tax increase. He noted that most fuel taxes are collected from the lower mainland, meaning an increase -for,rural roads effectively. chah- nels” money from the ‘Vaneouver a area to other regions.” _ “This is going. to. open up the province,” Harris said, “I don't think, anybody: likes to “pay. taxes," he :added.” “There ‘Is no ‘government ‘dervice » that’s free.” so each school is considered as a se- Shutting juices run,” he said, adding cand even amalgamating the .school bus system with public transit to save money. Infusion eases budget bind we “By JENNIFER LANG. ~ B c. PREMIER Gordon Campbell said the’ province will . provide millions in additional dollars to school districts, just as Skeena MLA Roger Harris began questioning the dire financial projections at School District 82.. °° >. - The premier, in Terrace Friday afternoon, was unable to outline specific funding allocations: pending the. re- lease of the provincial budget ‘yesterday. - But he confirmed the province: plans to provide school ; districts “in excess of $100 million” in additional base « funding to school districts over the next three years. “So, school boards are still going to have. to make some tough choices,” he said. Campbell sail the money was saved through pradent fiscal management and lower debt-servicing costs... Earlier in the week, Campbell announced school. dis- tricts will receive $50 million in one-time only grants this year — money boards can use in the coming school year, That announcement works out. to $559, 000° te the Coast Mountains District, clearly taking a bite out o the anticipated budget shortfall for the coming year... Secretary-treasurer Marcel Georges said the district's projected deficit may now be closer to $4 million. Trustees are considering dozens of different money- saving and revenue-gener- ating options, including school closures, But Roger Harris, Skee- na MLA, tol the Terrace Standard he thinks critics of the process who focus only on the money are passing up a chance to make posi- tive changes to education. “I'm disappointed that we don't: let the creative he likes the idea of a mag- aa AG net- performing arts school Roger Harris “We can’t continue to do things in the same fashion,” - he said, adding school districts need to be creative, in- novative ~ even- adventuresome. Meanwhile, trustees continue to complain of: impend- ‘ing cuts they say are necessary in part due to expenses the province said it wouldn’t pay for ~ including years two and three of the legislated wage increase for | tea- chers. “Well, it’s there now,” Harris said. “Now they’ re say- ing they want enough money to cover the teachers’, sal- aries — plus inflationary pressures. It’s. a changing goal post.” He questions the math the school district is. using to come up with its current deficit projection, © _“Lthink they need to qualify the number. I think that's very important. We have put more: money into the system,” Harris said, pointing to a recent $230,000 grant to help the district cope with declining enrolment, “I think that:whatever We give them they" Il. spend, This . tsn *t a bottomless pit.” “He also urged’ the public to realize additional ‘school closures may be necessary. “I think that when you have student losses of the magnitude we've séen last year and the onés we're pro- -. jecting- for next year, we shouldbe closing schools,” he “said: “You Gan’t just artificially prop things up. 1 don’t - think you Il see art end to the requests [for funding].to be honest.”