FYI - Luxury Tax and HST
 

Just a heads up to anyone looking to purchase or lease a vehicle over $55k in the near future (yes people on Revscene can afford nice cars!):

With the introduction of HST on July 1, 2010, luxury tax will no longer exist.

Therefore, if you are buying a $60,000 vehicle, you will save 3% on your purchase if you can wait until after July 1st. That equates to $1800. Money you can spend on a vacation, accessories for your new vehicle or hookers & blow.

As a reminder, current luxury tax rates based on the MSRP of a vehicle are:

$55,000-$55,999 - 1%
$56,000-$56,999 - 2%
$57,000+ - 3%

Hope this saves someone a few bucks.

Kev

Oh and in case anyone is wondering about private sales of used cars, the tax rate will not change. It will remain at 7% (PST only).

Kev

that's some awesome news :)

Thanks I was really curious about private sales.

how is that awesome news??? the HST still = more$$$

i mean i guess its good news if your not going to be able to get a car until after the HST is introduced but :/

^^^when you buy a car from a dealership you pay gst+pst that = HST........

so this is good news because it eliminates the luxury tax that people pay for now

Nice!

BTW to your FYI... where did you get this information?


We're trying to look on the positive side of things...

I never understood why the luxury tax existed in the first place

tax grab from the rich?

which seemed to work, despite the tax there's still a lot of high end cars here in Vancouver...

you mean richmond? right? :p

no vancouver actually has nicer cars, just that richmond is compact into one steaming pile of driving shithole

^ Fixed that for you ;)

Yea right. Vancouver has much nicer cars.
Posted via RS Mobile

Sorry, I should have referenced that.

From Ernst & Young's tax bulletin:

Link

Kev