WHITBY FREE'PRESS, WEDNESDAY, DECEMBER 26, 1990, PAGE 3 GS epected o incerease Townaxes by 2% By Mike Kowalsld if the gooda and services tax (GST) had been in effect this ear Whitby homeowners would ave paid an extra $8.25 ini taxes no th unicipalit%, Based on Whtb;Yýý 1990 cur- irent budget the recently ap ro- lved. GST would have added 'an extra. $212,000 te the tai levy, stat0s a staff report. Tho $212,000 figure represents about one per cent of the Town's total net expenditures duning the past year. It translates into appo- mately. 1.5 milla which would have increased the average homeowner's taies by $8.25 to fund additional costs te the municipality created by the GST. This information was con- tained in a staff report te council on the impact of the GST on the municipahity. (Planned to take effect Jan. 1 the seven per cent GST wilI replace the largely «hidden» 12 per cent manufacturera' sales Council last week approved the report which recommenda aa simplifled" accounting method for administering the GST at the local level. But implementing the simpli- fied metho suggested by the Town'a treasuxyee tent will itself cost $9,945. Howýever, the cost is expected te be "mnore than offset» by the reduction ini staff tie involved te implement, administer and By Mike Kowalski Recession or not, it was busi- ness as usual for Wlhitby mer- chants this holiday season. According te a random survey, local businesses contacted b y The Free Presa experienced lit tle or no decrease in sales from pre- vious yeara. «We're booming, very busy there's no recession here,» aaid Lionel Graveline, owner of Pic- ture This &That. "Our sales have been up since September, we're above last year. » Graveline said that from his discussions with other downtowni merchants the saine holda true for many of them. If you're a service-oriented business and you serve the pub lic well, they'll keep coming back.» Gene Peacock of Peacock Sports and Trophies echoed Gra- veline's commenta. «We've had an excellent faîl. Peola want service and quality. If they get it they'll come back,» said Peacock. Peacock said that despite the «doom and gloom» of media atonies about teday's economy, hie and his employeea have adopted a positive attitude. "It could (have been bad) if wei listened te the news but I talked te the staff and teld them te greet the custemers, be positive don'tf ocus on the negative,» saici Peacock. «It seema te have generated a good amount of business.» Peacock believes people generally are guilty of not "thinking for themselves' andi "faîl into the trap of listening te the doom and gioom» of news atonies. "As huznan beinga we are al followers. If someone saïsa thinga are bad then it must be. Dagmar Weller, owner of Wel- ler's Cabinet Making & Refinish- ing is pleasantly surprised with th e ainount ofbuiness at hier store. «It's not any diffrent from lest year, aur old custemera are b)ackc," said Weller. «All in ail, considering we're in a recession, were doing okay.» The fact that ber business is more 'apeclalizedý than an uavera«e gift store» may help monitor the GST using a «detai- led» accounting method, the report adds. Councillor Joe BugeiH, ope- rations committee chairman, pre- dicted the GST will account -for two per cent of next year's tex, iLncrease. "I don't know what the budget holds for next year but even before we look at budget conside- rations we 're looking at $212,000," said Bugelli. «It even costs an additional $10,000 te apply the formula the treasurer ip suggesting,» he added.% According te the 'staff report, the federal government has allowed the MUSHI( Municipali- ties Universities, Sehools, Hospi- taIsý sector ta use a simplified accountingmethod for the GST. Usera may, f they choose, account for the GT by collecting seven per cent on aIl commercial revenues and remit only 6.3 per cent te Ottawa. On the' expenditure aide, muni- cipalities claim a straight 57.14 per cent rebate of -ali taxes paid for operating supplies, states the report. Although the GST replaces the 12 per cent sales tai, Bugelli noted that municipalities do not curentl pay the tai on many itms, such as fire trucks. jW'r loing at a two per cent tax increase for next year based on the GST alone,» said Bl.;der te avoid paying the GST before absolutely necessary, council approved spending contribute to sales, she added. "The only comment I can make is that it's flat,» said AI Kent, owner of Mercantile Department Store and wo other stores down- town. «We're not showing growth but people are shopping for Christ- mas.» Kent said it was «too soon» to tell if, overail revenues were down from prévious years. While the recession apparently had littie impact on these mer- chants, it may be a difféent situation in the months ahead. Next Tuesday the federal government's controversial good and services, tax wîll take eéffect and how the tax affects: con- sumera' shopping habits iis not known at this time. «It's hard to say at this- point, people are not buying i anti- cipation of it commg on,"» said Kent. While many of the «amaller ticket items» he sella will feel the full impact of the tai, clothing, for instance, Kent ad prices are ex ted to drop in some areas. xean roducts on the market will be the same or lower in price, cars, for example, furni- ture and appliances. Weller, for one, believes the media "mnakes more of that (GST) than what it is. «Wegt ail hypd-upabout it at the bgnning but it's just an adjustment, thinga wi1l faîl back into place.» Weller said that despite the tai, people will still make pur- chases when the need arises. "It's like movie ýprices right now. People are upset because it'a $8, but they will pay it.» anr-ue mrgaerae -Lw .r er-dwnayrnen *May roprtes o hooe55o Ifyuwntaet wh r $177,838 on a new sewer cleaner. nhe 1990 model will replace the 10-year-old cleaner now in operation. The oucceaful bidder, C.M. MOTO)PHOTO $4 Off In Phiotofinishiiný Equipment Inc. of Scarborough, promises delivery by Dec. 3 1. In accordance with existing, federal sales tax rules concerning road-making and cleaning equip- ment, the cleaner is exempt froin the 12 per cent tax. But if delivery occurs in 1991, the vehicle will -be subject te the GST. 2ND SET 0F PRINTS FILM OR FREE FILM g Coupons Corne in now for big savings on 24 exposure, 100ASA, 35mm colour print Motophoto 2-Pak film! Included are two $2.00 Off coupons for any films brought ln for developingl (12, 24, 36exp.; 110, 126 and 135 format). Doos not apply toisc film. Not valid wlth any other offer. W hile quantities last. Coupon not required. DEC. 28, 1990-JAN. 5, 1991. Corne on in and we'll glve you a second set of prints on each roll of C-41 colour pnnt film processed or a free roll of 24 exýsure 35mm, 10W ASA Motophoto film absolutely FREEI ur colce. WilI flot be comblned with any other aller, promotion or coupon. No coupon required. I S ?8fidr PROCESSINGg 149.RPRII pon SPECIAL MTOE40I 1 on 1l2 exp. on ?4 exp. on 36 exp. Bring us ail your colour negatives and we wilI Save now when pocessing ýand printing your colour print film . 1 make reprints for only 490 each! Limit 2 rilIs per coupon, per customer. Maximum 25 prints ~r coupon. (Doos flot apply IIIIIW. 1 1- l ri i1 AIZYA]i MC IDI 1 to dise n e s).ËBrs aîid 3 1 ,191.Not taDe cornbuneciwitn any other aller. ONE HOUR Weputthe T UNDSST __ 8TOYSWUS ci WH-ITBY snap à MALL your shoA&LP MOTOO MOTOPHOTO 2PZOTO 80Thickson Rd. ., Whitby 430-6764 666 BusiLness as usual despite recession 4540