most Model S and X after April 1,2018 will cost consumers 6-11% more!

[Paul Carter]

British Columbia's new luxury tax increase will cost most consumers 20.75% for 125k to under 150k and 26% for above 150k. That's a 6% increase for a basic Tesla and 11% for a Performance trim. Ouch. The BC Government thinks paying an extra 6 to 11% on such purchases are affordable to those making these purchases. The forecasts is for $20 million additional tax revenue over two years.

Existing leases will see an increase in their prices too. The tax on their original purchase is subject to these new luxury tax rates.

The federal 5% GST is also now compounded on top of the provincial PST tax rate of 15% for 125k to under 150k and 20% for 150k and above. So hence its effectively 20.75% not 20% and 26% not 25%.

 

[Tony_YYZ]

Existing leases will see an increase in their prices too. The tax on their original purchase is subject to these new luxury tax rates.

So anyone that is currently in a lease will have their prices affected? How is that reasonable? Someone leased and agreed to a certain price which they were comfortable with and then all of a sudden the price will be hiked during their lease term?

Please tell me I'm interpreting this incorrectly.

 

[Phillip L]

The forecasts is for $20 million additional tax revenue over two years.


View attachment 289531

Typical brain dead projection of a government. They take current sales numbers and assume their gouging will not change the behaviour of people. Of course, there will be fewer of the cars sold; so less tax revenue than they project.

 

[Visscher]

Typical because they think like lawyers. If they thought like scientists or businessmen it would be a different story. Take, for example, an embarrassing example, Trump. He is lowering taxes for people like me in the US and also for large corporations, but has maintained or increased tax revenue collected.

 

[Paul Carter]

So anyone that is currently in a lease will have their prices affected? How is that reasonable? Someone leased and agreed to a certain price which they were comfortable with and then all of a sudden the price will be hiked during their lease term?

Please tell me I'm interpreting this incorrectly.

I wish I could. Say the lease is $2,750 /month for the bare bones example I've given. Previously the total with tax was $ 3,162.50. Now payments after April 1, 2018 is $ 3,465.00. $275.00 more PST and $27.50 more GST.

 

[Tony_YYZ]

I wish I could. Say the lease is $2,750 /month for the bare bones example I've given. Previously the total with tax was $ 3,162.50. Now payments after April 1, 2018 is $ 3,465.00. $275.00 more PST and $27.50 more GST.

That is just overwhelmingly bad. Do they not anticipate a mob of pissed off people getting upset over this?

 

[Phillip L]

That is just overwhelmingly bad. Do they not anticipate a mob of pissed off people getting upset over this?

They are NDP. Don’t care. Know where their constituency is. Looks good to them to be screwing the “rich”. Ideology trumps policy.

 

[S'toon]

Typical because they think like lawyers. If they thought like scientists or businessmen it would be a different story. Take, for example, an embarrassing example, Trump. He is lowering taxes for people like me in the US and also for large corporations, but has maintained or increased tax revenue collected.

What are you talking about? He's INCREASED the deficit. That's why the GOPers are now talking about cutting social programs, and entitlements.

Funny thing. Every time over the the past 40 years, governments have tried increasing tax revenues by taking in less taxes, it hasn't resulted in more tax revenue. Just ask Kansas, who had their budget designed by Art Laffler of the Laffler Curve scam how well that worked.

 

[Paul Carter]

That is just overwhelmingly bad. Do they not anticipate a mob of pissed off people getting upset over this?

Yea its not amusing many. And no surprise the new car dealers association (NCDA) doesn't like it.

From '25 per cent is a big number': B.C. luxury car dealers brace for impact of new surtax | CBC News

The first bracket is a one per cent surtax, plus the seven per cent PST, for vehicles priced from $55,000 to $59,999.

But Qualey said pickup trucks now cost that much.

When considering a new threshold, he pointed to the cutoff vehicle price — $77,000 — for the province's clean-energy-vehicle rebate program.

So does one conclude NCDA thinks electric vehicles above 77k are just a luxury and that other cars & trucks between 55k and 77k are not?

 

[Tony_YYZ]

Yea its not amusing many. And no surprise the new car dealers association (NCDA) doesn't like it.

From '25 per cent is a big number': B.C. luxury car dealers brace for impact of new surtax | CBC News


So does one conclude NCDA thinks electric vehicles above 77k are just a luxury and that other cars & trucks above 55k are not?

Pretty much. NCDA will throw shade on any EV program to be fair, no?

 

[sitter_k]

They are NDP. Don’t care. Know where their constituency is. Looks good to them to be screwing the “rich”. Ideology trumps policy.

I guess their constituents want them to put those "Rich Chinese" in check given its recent policies...

 

[Astraviel]

The older I get the more I hate the NDP.

 

[sitter_k]

The older I get the more I hate the NDP.

Yeah that's usually what happens with political views with age lol

 

[ytwytw]

Same as foreign buyer tax for property.

NDP doesn’t even give a buffer time and cause buyer to close a house in 3 days

ON is much more reasonable on this

#MoveOutofBC

 

[ebatmobile]

Do you write for Buzzfeed because this is a clickbait title at best. Next time post the location as it is specific to BC.

 

[Paul Carter]

Do you write for Buzzfeed because this is a clickbait title at best. Next time post the location as it is specific to BC.

My apologies, I thought I had "in BC" at the end of that and see that it doesn't.

--
update: I reported myself to add "in BC".

 

[sauce]

Braindead. They're hurting one of the rare car companies that actually do something (and do it right) to curb transportation sector emissions.

The one party besides the greens you'd expect would get it.

 

[sakimano]

this is what happens when you vote NDP

Ontario is suffering the same approach. Weak governments who sell billions of taxpayer dollars to unions and special interest groups for votes, and then they spend wastefully as if there was a limitless supply at their disposal.

Lazy governments that would rather just jack up taxes to pay for their foolish spending than sharpen their pencils and find efficiencies in the system. Sickens me to watch it.

 

[jkirkwood001]

Yea its not amusing many. And no surprise the new car dealers association (NCDA) doesn't like it.

From '25 per cent is a big number': B.C. luxury car dealers brace for impact of new surtax | CBC News


So does one conclude NCDA thinks electric vehicles above 77k are just a luxury and that other cars & trucks between 55k and 77k are not?

In a word, yes.

Don't tell me an S is not a luxury compared to a LEAF. If you need more space, you could buy two LEAFs for less than the price of an S (and get the rebate on both BTW). If you need AWD like me, I agree there's slim pickings until the 3 AWD is released, besides the X which is over the threshold.

 

[jkirkwood001]

Braindead. They're hurting one of the rare car companies that actually do something (and do it right) to curb transportation sector emissions.

The one party besides the greens you'd expect would get it.

I don't think that's fair: they're not hurting companies that care, there not helping with a subsidy companies that make cars that most people can't afford, a rebate that would be, as well all know, using our tax dollars to help rich people.

The performance version, by definition, is a luxury! Nobody needs it, why subsidize it?

In other words, by capping the rebate, the government is saving tax dollars for the 95% of tax payers that can't afford a car over $75 K. Do you still think that's unreasonable?