BC luxury tax surcharge
02-20-2018, 10:33 PM
#1
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BC luxury tax surcharge
So BC just raised the luxury tax on cars, and now PST on everything over $150K is 20% (15% on everything above $125K). How is this calculated? For example, if I trade in a car valued $50K and buy one that's $130K, so I only pay $80K, the tax is on $80K only. But is the tax rate 10% (for sub $125K) or 15% (for over $125K)? Not much info on new taxes but I bet they work the same way as already existing ones work (the 1%-3% surcharge over ~$50K). First world problems, but why tax cars so punitively, and not other luxury items.
02-20-2018, 11:32 PM
#2
Drifting
Are you kidding me? I love living in BC but I’m getting sick and tired of the fleecing we get around every corner. Why is gas so much here? I’m paying $1.70/l these days.
Brutal! And they raise total tax on luxury cars by 50%? WTF?
Brutal! And they raise total tax on luxury cars by 50%? WTF?
02-20-2018, 11:57 PM
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Total tax on luxury cars went up from 15% to 25%, so by even more than 50%. Still not as bad as in some other countries, but getting up there in the punitive zone, compared to other provinces. It's like they are signaling to anyone well off to just leave. Reminds me of the cold war era joke - "the difference between socialists and communists is that socialists want to eliminate poverty and communists want to eliminate wealth." Seems like BC favors the latter approach.
02-21-2018, 11:11 AM
#6
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and more taxes to the real estate market (foreign buyers tax increase and speculator's tax)
https://www.bloomberg.com/news/artic...-tax-increases
https://www.bloomberg.com/news/artic...-tax-increases
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02-21-2018, 04:16 PM
#8
Racer
If it's just about luxury items what else do you practically go after?
handbags/jewelry? prob too hard to admin...
boats? vol too low...
houses? can of worms here...
BC Car Dealers Association is a huge donor to the Liberal Party... so it could be political. My guess is a populist move towards addressing those N-badged high-dollar super cars that keep making headlines for crashing/speeding. or maybe both
02-21-2018, 06:30 PM
#10
I wonder how long before Ontario follows suit...
02-21-2018, 07:04 PM
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Practically doesn't make that much revenue - forecast is $10M annual. So they must be trying to send a message?
If it's just about luxury items what else do you practically go after?
handbags/jewelry? prob too hard to admin...
boats? vol too low...
houses? can of worms here...
BC Car Dealers Association is a huge donor to the Liberal Party... so it could be political. My guess is a populist move towards addressing those N-badged high-dollar super cars that keep making headlines for crashing/speeding. or maybe both
If it's just about luxury items what else do you practically go after?
handbags/jewelry? prob too hard to admin...
boats? vol too low...
houses? can of worms here...
BC Car Dealers Association is a huge donor to the Liberal Party... so it could be political. My guess is a populist move towards addressing those N-badged high-dollar super cars that keep making headlines for crashing/speeding. or maybe both
02-21-2018, 07:08 PM
#13
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Anyway, I found the answer to my original question. With a trade-in, the tax rate is calculated based on the value of the car bought, regardless of the trade in value. But the amount taxed has trade-in value deducted. So buying $150K car with $100K trade-in will be taxed at 25% rate but on only the difference ($50K).
02-21-2018, 07:26 PM
#14
There’s a huge difference between a ‘supercar’ with an ‘N’ badge (typically $300K+) and what the NDP consider a ‘luxury’ car. The general public is ignorant and thinks $125K+ is only for the super rich. Really?
Many ‘mid-level’ luxury cars will fall into that category... you don’t need to be that rich to buy these cars...
- top-spec BMW 5 series, 6 series, 7 series, M models, etc
- top-spec Mercedes E class, S class, GLS, AMG, etc
- 911, Panamera, Cayenne S+, Macan Turbo+
- Range Rover, Jag F type, Tesla S/X etc.
An additional 5% - 10% is pretty significant and can potentially hurt many of the above mentioned dealers. Note that it applies to used vehicles too, so it hurts the resale value for current owners of such vehicles as well.
A typical $150K 911 Carrera S is going to be $200K out the door after taxes, fees and insurance!?!
Many ‘mid-level’ luxury cars will fall into that category... you don’t need to be that rich to buy these cars...
- top-spec BMW 5 series, 6 series, 7 series, M models, etc
- top-spec Mercedes E class, S class, GLS, AMG, etc
- 911, Panamera, Cayenne S+, Macan Turbo+
- Range Rover, Jag F type, Tesla S/X etc.
An additional 5% - 10% is pretty significant and can potentially hurt many of the above mentioned dealers. Note that it applies to used vehicles too, so it hurts the resale value for current owners of such vehicles as well.
A typical $150K 911 Carrera S is going to be $200K out the door after taxes, fees and insurance!?!
02-21-2018, 07:59 PM
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Lets just tax the hell out of the luxury sector which generates jobs and tons of money in taxes already. And while we're at it lets just go after the foreign capital, capital we need not only for BC but for Canada as a whole to stay in competitive in the world. Funny thing is all the NDP supporters love it when they stick it to the rich but don't get too happy because the media is reporting today that the NDP is looking to increase ICBC rates on all drivers because the luxury tax will only bring in "$10 million".
The sad reality of all this is the NDP is going to foot BC with a massive bill like they always do when they get into power and we'll be paying for their F up's for years to come.
The sad reality of all this is the NDP is going to foot BC with a massive bill like they always do when they get into power and we'll be paying for their F up's for years to come.
