Canadian Province Prepares To Levy 25% Super Tax On High End Automobile Purchases

Another government spending program out of control looking to tax its way out of deficits. Little does it care about the hundreds of people who back up these high end vehicles with sales, parts, maintenance, etc whose employment will be affected if high end vehicle sales decline. I am far from rich but have serious problems with these tax the rich schemes to cover out of control governmental spending. Put pressure on your local politicians to address the real spending issues at hand before they work their way down the food chain and come for you.

Sounds like a great way to punish the people who make their living trying to sell these things.

So, in reading the article you will pay an extra 5% on the lower priced luxury car and an extra 10% in tax on the more expensive car. If you really want that F488 it is likely at "market price" already, not list so the "hose" is just flowing a bit more now. Is it annoying? Yes it is. Just like seeing US prices for almost all goods so much lower than they are in Canada, far beyond what the exchange rate could justify. Some will still buy, other will get cars shipped in from other provinces and some may buy CPO instead. Not a good long-term strategy politically.

Buying your car in another province and have it shipped to BC will not save you the tax. The tax becomes payable when the car is registered in BC, regardless of where it was purchased

@autopal.. That doesn't quite make sense to me. If I buy a fancy car in Ontario and then move to BC I should not have to pay the tax just because I register my car there and become a resident in the same quarter. As well if I have a ski chalet in Alberta and buy a car locally and then move it to my condo in BC 2 months later or at the end of ski season, I should not have to pay the tax either. In all things tax-related, ask your accountant before you buy...

That is on top of the luxury tax already in place.

Canadiancomments you are correct. It is about where you reside. If I live in Alberta I can purchase the car for 25% less than in BC. If I move to BC I can register it there without incurring the luxury tax.

The registration depends on where the buyer is domiciled. If the car is being registered in BC, it doesn't matter where the car is bought, BC taxes are payable. Likewise, if a resident of Alberta or Saskatchewan buys the luxury car in BC, but register it in Alberta or Saskatchewan, the tax will not apply, the buyer will only pay taxes as per their province's regulations. If you are a resident of another province, and then move to BC with your luxury car, nothing would be payable, that is called settlers effect.

In other words, if you live in BC, and plan to register your luxury car in BC, there's no escaping the tax.

It works the same way in the US. The county I live in (Washington state) has a 10% sales tax. If I buy a car anywhere else in the country and take it home to WA, I have to bay whatever difference there was between the tax I paid in the purchase state and the 10% amount. I have to license the car in another state, and keep it there for at least 90 days, before I can bring it to WA and not pay the full tax.

I was considering this when I was staying in VA on my job detail (would have saved about 6% of the tax), but they sent me back to WA early so I couldn't meet the 90 day requirement. I'm still on my detail, just not staying in VA full time.

I didn't say that clearly. I would have only paid about 4.5% sales tax instead of 10%. Not saved 6% of the tax. More like 60%.

The NDP ("New Democratic Party", more left than Liberals) put in mobile speed cameras in the Canadian province of Ontario. They were so hated that the next election has a contrary party's platform in which they would remove the cameras. Next election, NDP and speed cameras were out.

I don't know if there are enough car fans, or wealthy people in British Columbia to reverse this.

FWIW, I'd love to get a Porsche 911 Turbo someday. It would piss me off if my locale suddenly added a 25% tax on my dream car, or dream cars in general.

This’ll hurt the enthusiast who saves up for years to afford a 911 ,Audi R8 Ferrari etc. I doubt it’ll hurt the mega wealthy who will buy the car regardless.

That's great news for us in the US - rich Canadians should just move here and buy as many luxury cars and luxury goods as they want.

If they are rich, they will be welcomed by the Trumpinator with open arms - all they have to do is to kick in at least a $500,000 investment into a Jared Kushner or Trump Jr. Condo project!

Easy-peasy ~

Psychic spies from China
Try to steal your mind's elation
And little girls from Sweden
Dreams of silver screen quotation
And if you want these kind of dreams
It's Californication

More socialist BS.

@MD you should see what Canadians pay for a 24 of beer, or a bottle of spirits. A luxury tax on supercars is only the tip of the iceberg. Your head would likely explode... :)

Imagine the run on luxury cars now before the tax hits. Inventory will be really picked over. No winning on this one.

Canada is run by insane liberals who think they have the right and ability to CONTROL the public in mind and behavior. All is a government illusion guaranteed to fail and incense the people.