BC Luxury Vehicle Tax

[23.skidoo]

Is anyone familiar with the new BC tax rates for "luxury" vehicles?

I assume most Model 3 configurations will be subject to 7% PST plus 3% Luxury tax?

Doesn't seem fair to tax a zero-emissions EV in this way!

 

[Yooner]

Yep. We'll be paying 15% tax altogether on the full purchase price, even on the $5k rebate for those that will qualify.

 

[23.skidoo]

Yep. We'll be paying 15% tax altogether on the full purchase price, even on the $5k rebate for those that will qualify.

ouch!

The rebate comes off at point of sale?

 

[Yooner]

ouch!

The rebate comes off at point of sale?

Yes, they tax the full purchase price of the vehicle, then Tesla will subtract the $5k after the tax has been applied.

 

[realtycoon]

Let this be a warning to those in Ontario. NDP in Ontario have proposed introducing a luxury tax

 

[S'toon]

Let this be a warning to those in Ontario. NDP in Ontario have proposed introducing a luxury tax

... The Cons will scrap the EV rebate.

The proposed luxury vehicle tax apparently will be on vehicles over $90K.

 

[realtycoon]

... The Cons will scrap the EV rebate.

The proposed luxury vehicle tax apparently will be on vehicles over $90K.

That’s what they told the good people of BC at first, then they started lowering the threshold.
Also NDP will most likely scrap rebates too.

 

[Yooner]

Doubt very much that BC's NDP government will be reducing incentives for ev adoption. If anything, they will increase resources into clean energy, not take it away.

 

[Canuck]

I assume most Model 3 configurations will be subject to 7% PST plus 3% Luxury tax? Doesn't seem fair to tax a zero-emissions EV in this way!

Yes, that's what I paid on my S -- 15%. $100k plus $15k just in taxes. Then people complain that I don't pay gas taxes.

Now the NDP has increased it on vehicles over $125k:

• $55,000 to $55,999.99 7% PST plus 1% Luxury tax
  
• $56,000 to $56,999.99 7% PST plus 2% Luxury tax
• $57,000 to $124,999.99 7% PST plus 3% Luxury tax
• $125,000 to $149,999.99 7% PST plus 8% Luxury tax (effective April 1, 2018)
• $150,000 and over 7% PST plus 13% Luxury Tax (effective April 1, 2018)

"Punish the rich" is the NDP mantra, even though most of those with wealth have earned it, and mostly through hard work.

 

[richrootes]

Yes, that's what I paid on my S -- 15%. $100k plus $15k just in taxes. Then people complain that I don't pay gas taxes.

Now the NDP has increased it on vehicles over $125k:

• $55,000 to $55,999.99 7% PST plus 1% Luxury tax
  
• $56,000 to $56,999.99 7% PST plus 2% Luxury tax
• $57,000 to $124,999.99 7% PST plus 3% Luxury tax
• $125,000 to $149,999.99 7% PST plus 8% Luxury tax (effective April 1, 2018)
• $150,000 and over 7% PST plus 13% Luxury Tax (effective April 1, 2018)

"Punish the rich" is the NDP mantra, even though most of those with wealth have earned it, and mostly through hard work.

Yes, that's what I paid on my S -- 15%. $100k plus $15k just in taxes. Then people complain that I don't pay gas taxes.

Now the NDP has increased it on vehicles over $125k:

• $55,000 to $55,999.99 7% PST plus 1% Luxury tax
  
• $56,000 to $56,999.99 7% PST plus 2% Luxury tax
• $57,000 to $124,999.99 7% PST plus 3% Luxury tax
• $125,000 to $149,999.99 7% PST plus 8% Luxury tax (effective April 1, 2018)
• $150,000 and over 7% PST plus 13% Luxury Tax (effective April 1, 2018)

"Punish the rich" is the NDP mantra, even though most of those with wealth have earned it, and mostly through hard work.

Yep - me too, plus I missed the window for the EV incentive rebate

ICBC is getting in on the act too - Coverage for luxury vehicles - and watch out if you have a few points on your licence, as I predict they’ll be using this data to class you as a high risk driver

Gets more like the UK here every day, unfortunately

 

[guillaumef]

It'st funny that you're jumping at a 15% tax. In QC, that's the standard tax already in place!

And we have to pay luxury tax to cars over 40k on the cars registration that we have to pay every year. Luckily, they raised the threshold for evs in term of luxury tax. It starts at 65k I believe

 

[bpjod]

It'st funny that you're jumping at a 15% tax. In QC, that's the standard tax already in place!

And we have to pay luxury tax to cars over 40k on the cars registration that we have to pay every year. Luckily, they raised the threshold for evs in term of luxury tax. It starts at 65k I believe

Well to be fair, the earlier posters were just showing the provincial taxes. They also have the federal GST at 5% in addition to the rates listed above. Therefore there's a combined provincial and federal taxes of 12% even if no luxury tax applies. Not far off your 15%. Then the luxury can bump the taxes up all the way up to 25%! I'm sure there's also some further taxes such as for tire and a/c refrigerant disposal, etc..

Although we here in Alberta wish there were some sort of EV incentives such as other jurisdictions have, we really should be grateful that we simply have the 5% GST. It doesn't help to make EVs more compelling than their ICE counterparts here in Truck Country, but it does keep the overall price with taxes included far less than the other provinces, with the exception of Ontario, with their generous EV rebates (while still in existence).