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: FYI - Luxury Tax and HST

Roach
02-19-2010, 03:30 PM
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
Roach
02-19-2010, 03:34 PM
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
!Aznboi128
02-19-2010, 03:53 PM
that's some awesome news :)
TouringTeg
02-19-2010, 06:08 PM
Thanks I was really curious about private sales.
StylinRed
02-19-2010, 06:23 PM
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 :/
GC8
02-19-2010, 06:36 PM
^^^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
hchang
02-19-2010, 09:27 PM
Nice!

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


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 :/

We're trying to look on the positive side of things...
shenmecar
02-19-2010, 10:53 PM
I never understood why the luxury tax existed in the first place
hchang
02-19-2010, 10:55 PM
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...
Philly74
02-20-2010, 12:22 AM
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
Qmx323
02-20-2010, 12:43 AM
no vancouver actually has nicer cars, just that richmond is compact into one steaming pile of driving shithole
jlenko
02-20-2010, 10:55 AM
(yes children with "N" licences on Revscene can afford nice cars using their parents' money!)

^ Fixed that for you ;)
Leopold Stotch
02-20-2010, 12:36 PM
you mean richmond? right? :p
Yea right. Vancouver has much nicer cars.
Posted via RS Mobile (http://www.revscene.net/forums/announcement.php?a=228)
Roach
02-20-2010, 03:54 PM
Nice!

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



Sorry, I should have referenced that.



�� Elimination of the vehicle luxury tax of up to 3% on new vehicles over $55,000

�� Private sale of used vehicles, aircraft and boats are not subject to HST but will remain subject to PST

From Ernst & Young's tax bulletin:

Link (http://www.ey.com/Publication/vwLUAssets/Tax_Alert_2009_No_21/$File/TaxAlert2009No21.pdf)

Kev