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Are we supposed to pay $100 Air Tax? Thought Heat Pumps didn't pay this!

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There is the possibility that the error here is Tesla's, not the guv's...if so, hope they confirm it, and let it ride...I'd rather them leave me a $300 credit on account than issue a cheque...my wife would only spend it anyway...:wink:


Yes we know for sure. The electric motor is between the rear wheels and the AC compressor is below the frunk so they are definitely not connected by a belt.

When we figure this out, I want my $100 back with INTEREST! :)
 
When I get the letter I'll post whatever the results are but it will have to wait until the 17th when i am back. If true that we get the A/C tax back, then every Canuck Tesla purchaser should get it back. The excuse for the A/C tax was to be a pollution penalty because it would need power from the gas motor to run.
 
Got the letter from the CRA outlining the legislation. Please refer to the last paragraph on page 2.

.. Air conditioners which are powered by separate motors, propane or electricity are exempt from this tax.
I agree but this letter is no different than what is mentioned by RiverBrick in post 5 of this thread. I thought Groundhog Day was 15 days ago...
 
Here is a description of the exception from a memorandum posted on the CRA's website. It is worth noting the following CRA disclaimer "The information in this memorandum is for reference purposes only and does not replace the law found in the Act or its regulations."
http://www.cra-arc.gc.ca/E/pub/et/x3-1/x3-1-e.html

Exceptions

17. The excise tax on air conditioners designed for automobiles, station wagons, vans or trucks applies only to those that are powered by the engines or power trains of the vehicles mentioned. Air conditioners that are powered by separate motors, propane or electricity are not subject to this tax.

It is worth noting that this part of the memorandum is quite old and did not contemplate the implications of the exception for electric vehicles. It is also an interpretation that is likely inconsistent with the legislation and in need of revision by the CRA.
 
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The intention or excuse for the A/C tax was to penalize for the additional pollution produced because of more engine demand to drive the compressor. Since electric vehicles are non-polluting, that tax is redundant.

That would be a policy change that requires legislative action, the CRA is only able to interpret the existing legislation. In other words, write a letter to the Minister of Finance describing why the Act should be amended to exempt ZEVs from the AirCon tax. You could also raise the issue with the Green Budget Coalition ( http://greenbudget.ca/ ).
 
CRA, government department, response by next week? Not going to happen (unless Tesla makes out like a lobbyist for the oil industry)!

The CRA's service standard is 90 business days and businesses pay a fee when they request a ruling, so businesses have reasonable expectations of a timely response. This is what the CRA says: "The CRA will review a request for a ruling or an interpretation as soon as possible after receiving it. However, a ruling or interpretation may be delayed if it requires a review of an issue upon which the CRA has not yet adopted a position, or if the CRA is currently in the process of reconsidering its existing position."
 
Just came across this thread... I emailed Tesla with this question on Oct 11. They answered on Jan 12 to say essentially the same thing mrElbe said: they're looking into it and in the meantime, they will continue to charge the tax. The gears turn slowly...
 
The intention or excuse for the A/C tax was to penalize for the additional pollution produced because of more engine demand to drive the compressor. Since electric vehicles are non-polluting, that tax is redundant.

Yes, and Income Tax was a temporary wartime measure to fund WW I and gas taxes were to fund road work. I wouldn't hold your breath...