BC luxury tax surcharge
03-31-2018 | 01:43 AM
#106
Drifting
Joined: Jun 2006
Posts: 2,122
Likes: 140
From: West Vancouver
www.icbc.com/brochures/Pages/pst-on-vehicles.aspx
PST on vehicles
B.C.'s Provincial Sales Tax (PST) generally applies to a vehicle that is acquired in B.C. or imported into B.C. after March 31, 2013.
Luxury surtax applies to passenger vehicles when the value for tax exceeds:
PST is generally payable at the time the vehicle is registered with your Autoplan Broker. However, if you delay registering the vehicle, you may be required to pay PST directly to the B.C. Ministry of Finance.
If you purchased the vehicle from a GST registrant in Canada, you are required to pay PST at a rate of 7% plus luxury surtax if applicable. Note: The value of a trade-in does not reduce the value on which tax is payable unless the traded-in vehicle was registered in B.C.
When a vehicle is imported into B.C. from the U.S., the Canadian Border Services Agency will collect 5% GST at the border. You are required to pay PST at a rate of 7% plus luxury surtax if applicable on the value for duty, plus duty and excise tax when you register the vehicle. Note: The value of a trade-in and the federal personal allowance claimed at the border do not reduce the value on which tax is payable.
If you purchased the vehicle in a private sale, within Canada or the U.S., or received it as a gift in certain circumstances (i.e., from an individual), you are required to pay PST at 12%.
Tax on privately acquired vehicles in B.C.
If you purchase a vehicle in a private sale or receive it as a gift in certain circumstances (i.e., from an individual), the PST rate is 12%. If you paid 5% GST at the time you purchased or imported the vehicle, but no other tax, you will have to pay 7% PST plus luxury surtax (if applicable).Luxury surtax applies to passenger vehicles when the value for tax exceeds:
- $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)
PST is generally payable at the time the vehicle is registered with your Autoplan Broker. However, if you delay registering the vehicle, you may be required to pay PST directly to the B.C. Ministry of Finance.
Vehicles brought into B.C. from Canada or U.S.
You'll have to pay PST, if you import a vehicle from another part of Canada or the U.S. unless a specific exemption applies. PST is calculated on the depreciated value of the vehicle.If you purchased the vehicle from a GST registrant in Canada, you are required to pay PST at a rate of 7% plus luxury surtax if applicable. Note: The value of a trade-in does not reduce the value on which tax is payable unless the traded-in vehicle was registered in B.C.
When a vehicle is imported into B.C. from the U.S., the Canadian Border Services Agency will collect 5% GST at the border. You are required to pay PST at a rate of 7% plus luxury surtax if applicable on the value for duty, plus duty and excise tax when you register the vehicle. Note: The value of a trade-in and the federal personal allowance claimed at the border do not reduce the value on which tax is payable.
If you purchased the vehicle in a private sale, within Canada or the U.S., or received it as a gift in certain circumstances (i.e., from an individual), you are required to pay PST at 12%.
04-04-2018 | 06:59 PM
#107
Rennlist Member
Joined: Jul 2008
Posts: 252
Likes: 47
From: Vancouver, BC
http://special.nationalpost.com/foll...oney/donors#bc
7th largest donor in BC:
Had no idea so many of the donations in BC were from unions.
7th largest donor in BC:
New Car Dealers Association of B.C.: $1,356,924.58
The New Car Dealers Association of B.C. made 251 donations: $1,276,134.58 to the Liberals and $80,790 to the NDP. In the 2011 B.C. Liberal leadership campaign, it donated $1,000 each to five candidates, including the eventual winner, Christy Clark.
Had no idea so many of the donations in BC were from unions.
04-04-2018 | 08:09 PM
#108
Burning Brakes
Joined: Oct 2006
Posts: 764
Likes: 117
From: British Columbia, Canada
For those that do not take the time to open the attachment.
Here is a summary:
Of the top 10
Total union donations (to NDP mostly) - $14,653,347
Total non union organizations (to Liberal mostly) - $6,641,962
Before anyone complains about this being a political discussion here is my take as it relates to a car forum ...........
I guess the increase in PST on vehicle purchases is the pay back for the Auto Dealers Association not supporting the NDP.
Details:
United Steelworkers: $3,172,549.30
B.C. Government & Service Employees' Union: $3,098,648.36
Canadian Union of Public Employees: $2,918,461.99
Teck: $2,730,423.19
B.C. Federation of Labour: $2,292,773.35
Hospital Employees Union: $1,880,900.61
New Car Dealers Association of B.C.: $1,356,924.58
Aquilini: $1,327,473.33
United Food and Commercial Workers Union: $1,290,014.27
Encana: $1,227,141
Here is a summary:
Of the top 10
Total union donations (to NDP mostly) - $14,653,347
Total non union organizations (to Liberal mostly) - $6,641,962
Before anyone complains about this being a political discussion here is my take as it relates to a car forum ...........
I guess the increase in PST on vehicle purchases is the pay back for the Auto Dealers Association not supporting the NDP.
Details:
United Steelworkers: $3,172,549.30
B.C. Government & Service Employees' Union: $3,098,648.36
Canadian Union of Public Employees: $2,918,461.99
Teck: $2,730,423.19
B.C. Federation of Labour: $2,292,773.35
Hospital Employees Union: $1,880,900.61
New Car Dealers Association of B.C.: $1,356,924.58
Aquilini: $1,327,473.33
United Food and Commercial Workers Union: $1,290,014.27
Encana: $1,227,141
04-04-2018 | 09:47 PM
#110
Rennlist Member
Joined: Aug 2016
Posts: 661
Likes: 401
From: Canada
PS: I’m secretly hoping that this new tax deters enough potential buyers so that a free GT3 allocation opens up. That way I can have a hope in hell of snagging one! I’m too small of a fish, been falling down the allocation like there’s no tomorrow. Started #1, then #3, then #6, now I got a call that they just might refund my deposit. First world problems......FML
04-04-2018 | 09:48 PM
#111
Nordschleife Master
Joined: Sep 2003
Posts: 6,402
Likes: 868
From: Barrie/Marco Island, fl.
When you register the car in BC don’t you pay PST and the luxury tax based on the dealer invoice?
Wouldnt a simple solution be to have the dealer “sell” you the car for less?
I.e. Buying a $175K car:
1) Negotiate & get dealer to invoice you for $100K
2) Register vehicle and pay taxes on $100K
3) Forget your briefcase at the dealership with $75K cash in it.
4) Your briefcase shows up in the lost and found, but the $75K is missing. That sucks, oh well, go for a drive to feel better.
5) Both you and the dealer pay less taxes = win.
I assume most people buying these cars have large amounts of liquidity. It absolutely sucks to use cash on a depreciating asset, but it also sucks to throw more hard earned money to the governemnt.
Seriously, people b$@ch and complain all the time about all governemts and taxes, but then go around buying things electronically left, right, and centre. Simple to solution to all of this is for everyone to say enough is enough and start doing more cash transactions. Vote with your wallets! Stop using Visa/MasterCard/Amex/Debit!
Wouldnt a simple solution be to have the dealer “sell” you the car for less?
I.e. Buying a $175K car:
1) Negotiate & get dealer to invoice you for $100K
2) Register vehicle and pay taxes on $100K
3) Forget your briefcase at the dealership with $75K cash in it.
4) Your briefcase shows up in the lost and found, but the $75K is missing. That sucks, oh well, go for a drive to feel better.
5) Both you and the dealer pay less taxes = win.
I assume most people buying these cars have large amounts of liquidity. It absolutely sucks to use cash on a depreciating asset, but it also sucks to throw more hard earned money to the governemnt.
Seriously, people b$@ch and complain all the time about all governemts and taxes, but then go around buying things electronically left, right, and centre. Simple to solution to all of this is for everyone to say enough is enough and start doing more cash transactions. Vote with your wallets! Stop using Visa/MasterCard/Amex/Debit!
I'll bet you'll find lots of dudes dying to defraud the jackboots to save you a few grand in taxes.
04-08-2018 | 10:39 PM
#112
Drifting
Joined: Jun 2006
Posts: 2,122
Likes: 140
From: West Vancouver
Heres how I'm hearing people are dealing with this:
Short term leases with residuals that end up right below the threshold for the tax increases. The higher luxury tax is applied to the payments during the lease only. Maybe they lease one or two times to get to the next level, but they buy the car out once its depreciated below $125k and are therefore minimizing the amount upon which the insane tax rate is applied to.
Short term leases with residuals that end up right below the threshold for the tax increases. The higher luxury tax is applied to the payments during the lease only. Maybe they lease one or two times to get to the next level, but they buy the car out once its depreciated below $125k and are therefore minimizing the amount upon which the insane tax rate is applied to.
04-09-2018 | 01:15 AM
#113
Racer
Joined: Feb 2012
Posts: 453
Likes: 16
From: Vancouver, BC
Heres how I'm hearing people are dealing with this:
Short term leases with residuals that end up right below the threshold for the tax increases. The higher luxury tax is applied to the payments during the lease only. Maybe they lease one or two times to get to the next level, but they buy the car out once its depreciated below $125k and are therefore minimizing the amount upon which the insane tax rate is applied to.
Short term leases with residuals that end up right below the threshold for the tax increases. The higher luxury tax is applied to the payments during the lease only. Maybe they lease one or two times to get to the next level, but they buy the car out once its depreciated below $125k and are therefore minimizing the amount upon which the insane tax rate is applied to.
04-09-2018 | 12:15 PM
#115
Three Wheelin'
Joined: Jun 2014
Posts: 1,305
Likes: 184
Certainly you can see that a luxury tax on cars is both political and car related. In fact I don't see how you could separate them. No one is forcing you to read any of this nor to agree with anyone's opinion. I understand that people don't want to come to a car forum and have to wade through political rants but this is a significant issue for Porsche car owners/buyers. It's only a matter of time before other provinces see this as a great money grab.
04-09-2018 | 02:33 PM
#116
Team Owner
Joined: Aug 2005
Posts: 27,286
Likes: 1,191
From: Cambridge Ontario Canada
04-10-2018 | 09:42 PM
#117
Thread Starter
Rennlist Member
Joined: Jan 2013
Posts: 4,314
Likes: 1,301
From: West Vancouver and San Francisco
Here is a related question to those who researched the topic. It's not a hypothetical or a scheme - real situation. I was planning to buy my dad a car as a gift. He is also planning to relocate from Ontario to BC late this year, and I wanted to give him the car here when he completes the move to avoid shipping the car. But with this tax it makes sense for him to buy and register the car in Ontario before he moves, I guess, and then move. It will not be the highest bracket car, so savings will be smaller, but still why lose the money if this can be avoided. Any problem with this approach? I guess the cost of shipping the car will eat most of the savings, unless it's legally possible to buy the car located in BC while still living in Ontario and register it there and then move to Ontario in a few months.
04-10-2018 | 10:31 PM
#118
Drifting
Joined: Mar 2009
Posts: 3,372
Likes: 59
From: West of Mosport!
The main issue is that I guarantee that the buyers of Porsche's or any other high end car are NOT NDP supporters so hence - they couldn't give a crap about what anyone thinks here on their tax policies. Its all about redistribution of wealth in some great socialist utopian like dream they have - in between a few bong hits...
04-11-2018 | 02:20 AM
#119
Drifting
Joined: Jun 2006
Posts: 2,122
Likes: 140
From: West Vancouver
When I moved to BC they confirmed how long I owned the cars and then also confirmed how long I had been in BC to determine if I was exempt from paying taxes on bringing my own cars with me, if you can believe it.
Buy it your car right before you move or don’t register it in BC within a certain time, tax!
Buy it your car right before you move or don’t register it in BC within a certain time, tax!
04-11-2018 | 02:37 AM
#120
Team Owner
Joined: Nov 2002
Posts: 26,395
Likes: 499
From: Ontario
First of all the luxury tax surcharge doesn't amount to much. The greater issue that nobody wants to talk about is flow of money, by suitcases of cash from China that funds the McLaren, etc's and all high value stuff that distorts the economy of BC. It's a rape by an other name that will cause great harm to future generations whose chance of advancement is being robbed by the infusion of money laundered cash.
Donald Trump is spot on in his observation that we are getting ****ed over.
Donald Trump is spot on in his observation that we are getting ****ed over.