Islanders express confusion as province hands out payments with no explanation

Some Islanders were left scratching their heads after receiving a notification from the Canada Revenue Agency about a payment that landed in their bank account or mailbox this week.

For some, their quarterly HST rebates were either higher or lower than expected. 

But ultimately the confusion seems to have stemmed from the fact that the CRA combined payments from up to three different provincial programs and labelled them all as "Prince Edward Island sales tax credit."

In fact, the amounts included under that heading combined not only quarterly rebates under the province's HST program, but also inflation relief payments for some Islanders first promised by the premier back in March, along with payments from the province's carbon levy program.

Also confusing for some residents was the fact the criteria for the inflation relief payments changed since they were first announced March 8.

The payments were provided to individuals or up to two people per household. 

Individuals received the full $150 up to an income of $70,000, with prorated amounts provided up to an income of $84,000.

Households use a combined income, with full payments for two people up to a combined income of $70,000, and prorated amounts up to a combined income of $100,000.

The carbon levy payments used different criteria, provided strictly on a household basis.

A full payment of $140 was to be provided for households with an income up to $50,000. Prorated amounts were provided to households with incomes up to $70,000.

Terry Avery of Charlottetown said she had been anticipating a payment of $150 since the inflationary support payments were announced in March.

She said her husband is the main salary earner in the family, but has to travel off-Island for work, and spends $125 per week on gas.

She said it took multiple calls to various federal and provincial departments before anyone could explain to her what her payment was for, and why it was lower than expected.

"We tweaked it. Now it's combined income for the household," is the explanation Avery said she eventually received.