HST Could Have A Delayed Impact

Here in Ontario, the Harmonized Sales Tax came in with little or no bang as far as golf goes, but there could also be a delayed effect that carries over into early next year.

One of the good selling features on memberships leading up to the implementation of the HST on July 1 was save on the eight per cent and that helped with membership sales. I heard there were also a lot of closures late in June in the housing market, as well.

A big chunk of what a member spends at a private club is annual dues. Those were paid before the HST, so now, it affects things like green fees and guest fees. You might be bringing one or two guests, but the HST won’t have a huge impact.

Now, when we’re talking to people about memberships, there’s an extra eight per cent tacked on and the big impact may hit next February when the dues go out. People will have been used to paying one price this year and then see that extra eight per cent added on for 2011.

Our annual dues at Coppinwood are $6,300. Add on that extra eight per cent and you’re talking an additional $504 over what they paid in 2010. That’s a big hike that suddenly hits them and could be spent on something like a new driver.

So while July 1 may have come and gone, the impact of the HST on consumers may take several months to be realized by those who pay it.

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