Luxury Tax - Sept 1, 2022

[Tz00]

New draft legislation for the proposed Luxury Tax starting September 1, 2022.

Government releases draft legislative proposals to implement Luxury Tax - Canada.ca

In Budget 2021, the government proposed the introduction of a tax on the sale of new luxury cars and aircraft with a retail sale price over $100,000, and new boats over $250,000. The tax would be calculated at the lesser of 20 per cent of the value above these price thresholds or 10 per cent of...

www.canada.ca

 

[bpjod]

I thought this was a done deal. Tesla even called me up to try to talk me into switching from a Model X to a Model S Performance in order to beat the rollout of the luxury tax at the end of last year. Happy it's not in place yet. My Model X was supposed to be delivered in May, but has been postponed to September. Sure hope I get it before the tax is in place.

In the meantime, I sent them an email (I also did on the first round of consultations) suggesting they increase the threshold by 50% for boats, planes and vehicles that do not burn fossil fuels as the increased cost reflects the extra cost of batteries (or developing other alternative power sources) rather than simply a reflection of luxury. Can't hurt to try.

 

[Vancouver ClearBra]

This is getting insane... we will be taxed out of existence

 

[PonoponoE]

BC already has a luxury car tax since 2018… was surprised by it when I was ordering my M3LR. Any car over CAD$55k will be charged some extra percentages of GST. I know that a Tesla is by no means super affordable or cost saving but 55k just seems too low for a car to be considered “luxury”.
BC Luxury Car Tax Calculator

 

[TrevTremaine]

Well, any hope of bypassing the luxury tax is as close to dead as possible given that the Liberals are now obligated to the NDP.

 

[Murky-Article]

This is getting insane... we will be taxed out of existence

Not insane at all, totally agree with it. If you can afford a 100K car, you can contribute more to the society instead of just your own pocket... I am happy to pay it when I can afford one haha Currently enjoying M3 AWD.

 

[yvr_bbq]

BC already has a luxury car tax since 2018… was surprised by it when I was ordering my M3LR. Any car over CAD$55k will be charged some extra percentages of GST. I know that a Tesla is by no means super affordable or cost saving but 55k just seems too low for a car to be considered “luxury”.
BC Luxury Car Tax Calculator

This has changed recently, effective Feb 23, 2022. The limit is now $75k before the luxury tax gets charged - on ZEVs only though. And it’s not on the GST, it’s added PST.

Here’s the government bulletin if you’re interested.

https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/pst-308-vehicles.pdf

 

[Panda1]

Well now all used EV’s have no PST So might be good time to buy a used one in BC

 

[PonoponoE]

This has changed recently, effective Feb 23, 2022. The limit is now $75k before the luxury tax gets charged - on ZEVs only though. And it’s not on the GST, it’s added PST.

Here’s the government bulletin if you’re interested.

https://www2.gov.bc.ca/assets/gov/taxes/sales-taxes/publications/pst-308-vehicles.pdf

Yes I recently learned about this too and confirmed with the sales that the actual tax to be paid will reflect when I take delivery. I I applied for finance and what I was told is that my monthly payment won’t change, but the the 2000 difference from the lower tax at delivery will just go toward the down payment.