A tax on luxury cars , the C8 included ?

[larryd]

Well, well, I`m happy my C8 not a luxury one(paid $94k) !!!!
Let`s hope the Feds don`t get too wise and charge the 10% on top of price and HST.
Best bet is to stay under 100k and add aftermarket pieces.

here come the E rays !!!! Or that green C8 tractor.

 

[DenisC8]

C8 Z06 HTC will be hit with the luxury tax

 

[gone]

The luxury vehicle tax is somewhat less than anticipated (whew!):

-the LESSER OF:

-20% of anything over the purchase price of $100,000.00; or
-10% of the entire purchase price if over $100,000.00.

This is on new vehicles only. So if you purchase a new C8 Z06 for (say) $130,000.00, you'd pay $6,000.00 (20% of $30,000.00) since that's lower than $13,000.00 (10% of the entire $130,000.00 price). We still don't know if the percentage is calculated on the purchase price net of any taxes. I expect we'll soon find out: they'll need to include a definition of "purchase price" as either including or excluding other taxes. With some Provinces already assessing an extra tax on luxury vehicles, I'd wager the new Federal tax will only be on the purchase price w/o any other taxes factoring into it. I'll optimistically say that...

Here's the CTV article with details that have been released so far:

Luxury tax on yachts, cars and personal aircraft laid out in new federal budget

The federal budget proposes a new tax on luxury goods such as yachts, personal aircraft and cars. The tax would be applied to cars and personal aircraft that retail over $100,000; and boats for personal use that retail over $250,000.

www.ctvnews.ca

 

[JVi]

Call the C8 a boat and you are good to go.
Luxury tax applies to boats for personal use that retail over $250,000.

 

[JVi]

The luxury vehicle tax is somewhat less than anticipated (whew!):

-the LESSER OF:

-20% of anything over the purchase price of $100,000.00; or
-10% of the entire purchase price if over $100,000.00.

This is on new vehicles only. So if you purchase a new C8 Z06 for (say) $130,000.00, you'd pay $6,000.00 (20% of $30,000.00) since that's lower than $13,000.00 (10% of the entire $130,000.00 price). We still don't know if the percentage is calculated on the purchase price net of any taxes. I expect we'll soon find out: they'll need to include a definition of "purchase price" as either including or excluding other taxes. With some Provinces already assessing an extra tax on luxury vehicles, I'd wager the new Federal tax will only be on the purchase price w/o any other taxes factoring into it. I'll optimistically say that...

Here's the CTV article with details that have been released so far:

Luxury tax on yachts, cars and personal aircraft laid out in new federal budget

The federal budget proposes a new tax on luxury goods such as yachts, personal aircraft and cars. The tax would be applied to cars and personal aircraft that retail over $100,000; and boats for personal use that retail over $250,000.

www.ctvnews.ca

If they tax a tax (HST is taxed) there will be a revolution.

 

[Sparro]

This federal liberal government needs to be brought down hard, the way they were decimated provincially in Ontario.

 

[Ty.]

Owners of costly playthings like luxury cars, planes and boats are being hit with a new tax — of up to 20 per cent on cars and planes worth more than $100,000, and on boats worth more than $250,000.

The one time sales tax will be either 20 per cent of the value of the vehicle above that threshold, or 10 per cent of the total value, whatever is lower.

----

20% on the amount above 100k is the better deal if you purchase is below 200k

 

[JBJ21]

Happy I got my C8 before this new tax!

 

[Cariboocreek]

If they tax a tax (HST is taxed) there will be a revolution.

No there won’t. It has become obvious that Canadians have become “comfortably numb”. As long as the feds throw baubles and beads at enough voters in Ontario, the maritimes, and BC, we will be forever trapped in this anti-logic loop. Placate the masses with trinkets and those not rewarded will form the permanent minority.

 

[AndrewJ]

This federal liberal government needs to be brought down hard, the way they were decimated provincially in Ontar

C8 Z06 HTC will be hit with the luxury tax

expect all Z06 to be hit with this tax...my dealer does not expect any Z06 models to MSRP below $110k

 

[Rruuff Day]

For me, whoever can lower my taxes, have less scandals, keep the virtue signaling down, and not infringe on my rights is the party I will support.

Toss revoking the new firearms legislation in there too and I'm on board.

 

[tyho]

I guess I'll be buying used cars from now on. Another tax proposed by a incompetent Liberal government. Gave themselves a nice pay raise number two while so many people struggling to make ends meet. I've lost the number of taxes that a new car gets hit with on a purchase.

 

[Vanguard2001]

If they tax a tax (HST is taxed) there will be a revolution.

Let the revolution begin. HST will be added to the new luxury tax.

 

[tyho]

Let the revolution begin. HST will be added to the new luxury tax.

A tax on a tax. So much for the 10% or 20%.

 

[WPGZ06]

No there won’t. It has become obvious that Canadians have become “comfortably numb”. As long as the feds throw baubles and beads at enough voters in Ontario, the maritimes, and BC, we will be forever trapped in this anti-logic loop. Placate the masses with trinkets and those not rewarded will form the permanent minority.

Bingo. I'd swap maritimes for Quebec, but that is the formula. They do not care at all about western Canada

 

[larryd]

WE must be quiet about this tax. If any fed reads this , we can expect `add on` tax for Z06 and `Zora` versions.

 

[LE BARON]

Quebec already gets dinged with a "luxury" tax on a vehicle over $40K with certain exceptions
"A passenger vehicle or light truck is considered a luxury vehicle if it meets the following three criteria:

• it has a net weight of 3,000 kg or less
• it is 7 years old or less
• it is worth more than $40,000 "

As the vehicle depreciates it will eventually fall below the $40K mark and no longer be considered "luxury" This tax lessens each year as the car depreciates.

We also get dinged for large bore engines.
"Is the engine capacity of your vehicle 4 litres or more? Such vehicles are subject to an additional registration fee, payable yearly." If anything the bore size will go up a little with wear so no respite from that tax

Taxing vehicles at such low valuations is a good sign of complete unawareness of what life is about. Don't know where they can find a flight worthy plane for $100K
In 2016 I went down to just south of the border to pick up something and had lunch at a nearby marina. Approx 90% of the boats moored there were Canadian owned by looking at the plates on vehicles parked there. No taxes or registration being remitted to Canada on those well over $200K boats..

Government went out of their way for some stupid reason.
In a few years just about any decent vehicle will be over $100K unless it has pedals.

 

[LE BARON]

A tax on a tax. So much for the 10% or 20%.

Quebec taxes the Gouge and Screw TAX
Article price plus GST and then PST to that value

 

[carbuff]

Pittance tax everywhere except in BC here. You only have a right to whine if you live in BC. The tax is going to 30% in 2022. Yup, 30 % on a USED Bentley (at $150k), 20% on a measily Vette.

Right now it is still a bargain at ONLY 25% and 15% respectively.

and it is tax on tax, so actually more than that.

 

[LE BARON]

Its a pity that politicians, of all stripes, do not spend more time on trying to manage the monies that governments (fed. prov, muni) take in. They seem to have a keen eye for increasingly taxing the common folk in any way possible and are always on the lookout for that stone unturned.
Which is why there is an underground economy. And which is also why governments want to get rid of cash - so they can tax every dollar that is spent.
I am all for (un)employment insurance, welfare, health insurance, military, police, etc, etc. They have to be paid for out of the common purse. It is the waste that occurs that pissses people off. How many studies need to be done on any problem you can name at X amount of our dollars before the problem is rectified?
Unfortunately we, along with many others, are being asked to step up to their dining table once again and see if here is not a dime or nickel in our pocket left to contribute to their wanton ways.

Sorry guys and gals, My rant for today