Ottawa's new "Luxury Tax" on cars and boats

[Sochi]

What do you think about this new tax?
I am not planning any purchases of that magnitude so it's not really affecting me..
But maybe it will some of you - Cars over 100K and boats/planes over 250K value for personal use = additional 10 to 20%...

https://www.cbc.ca/news/politics/luxury-tax-boats-cars-planes-federal-government-take-effect-september-1-2022-1.6568421

 

[woot]

No complaints here. I don't intend on ever spending that much on toys.

If you can afford a 100K car but a 110K to 120K car is going to cause you financial hardship then you probably need to leave yourself a larger financial safety net anyway.

 

[mimico_polak]

Cars worth $99,999 and $xx,xxx in ‘value added service’ will become the norm.

Well off people are very good at finding ways around these things.

Also, if I lease a 150k car do I pay the tax if I’m technically only leasing 50-60% of the value?

 

[Brian P]

Doesn't affect me, and as long as the threshold for automotive remains ~ double the average transaction price, it won't.

There is the possibility of this becoming a creeping tax increase if the threshold doesn't go up with inflation.

 

[nobbie48]

What about pickup trucks? Will Ferrari, Rolls, Lambo start making pickups?

The US put incentives on trucks years ago and the result was luxury pickup with massive rebates.

 

[Sochi]

There is the possibility of this becoming a creeping tax increase if the threshold doesn't go up with inflation.

That's the good point, inflation with the rates we have now can make all the difference. The truck I am hopping to get is about 75K now (used to be 65K just a year ago ) but with 8% sustained inflation it will be 101K in just 4 years....

here is "inflation calculator" for ya

Best Inflation Calculator (2022) - Historical & Future Value | SmartAsset.com

Use this free inflation calculator with built in US Consumer Price Index - Urban data or enter your own inflation rate to determine the buying power of a dollar over time

smartasset.com

 

[crankcall]

there will be about a dozen ways to navigate ( and mitigate ) this tax. not so much with cars , but planes and boats in the hundreds of thousands range are owned by companies , often leased to other companies, owned by the same people....

 

[Baggsy]

In the meantime: "Hundreds of receipts and invoices released by the Privy Council Office (PCO) show that from Mar. 2021 to Sept. 2021, the average monthly cost on groceries and dining for the prime minister’s household reached $7,861."

 

[raginduck]

In the meantime: "Hundreds of receipts and invoices released by the Privy Council Office (PCO) show that from Mar. 2021 to Sept. 2021, the average monthly cost on groceries and dining for the prime minister’s household reached $7,861."

family of 4 and with the staff he has... that doesn't sound too high.

 

[Baggsy]

family of 4 and with the staff he has... that doesn't sound too high.

Just a tad higher than the Harpers: $2,533 at Market Organics? How the Trudeaus' monthly spending habits have differed from the Harpers

 

[Sochi]

Just a tad higher than the Harpers: $2,533 at Market Organics? How the Trudeaus' monthly spending habits have differed from the Harpers

Proud we keep our handsome leader healthy and in shape

 

[DownUnder]

Just a tad higher than the Harpers: $2,533 at Market Organics? How the Trudeaus' monthly spending habits have differed from the Harpers

Lmao redacted grocery bills for national security...

 

[raginduck]

Lmao redacted grocery bills for national security...

We know where they buy from... If we knew exactly what they bought.. someone could track it... and use that to cause harm to someone in the household.
If someone knew they bought certain food items every Wednesday... it's possible someone could taint those items on Wednesday morning... type of thing.

 

[Baggsy]

Be nice to know how many people this is feeding. If it's four, then it's very excessive, if it's one thousand, then it's dirt cheap.

 

[MacDoc]

I suspect there is entertainment involved there.
As for the cars and boats ..not big stretch tho I;'m surprised private airplanes are not included.

 

[CB900F2]

family of 4 and with the staff he has... that doesn't sound too high.

His kids and ex-wife dont live in the same house anymore.. its been a few years like this .. that $7k is just for him...

He has special Montreal bagels flown in for him on a daily basis...

 

[crankcall]

When purchased with a federal purchase order , avacado toast is $72.00 slice . And the contractor is a 2nd cousin


Sent from my iPhone using GTAMotorcycle.com

 

[mbroyda]

add this tax to the list of retarded "feel good" laws that our current government passed.

 

[timtune]

Cottages are a "toy" for the rich. Why no tax on them?

 

[crankcall]

Cottages are a "toy" for the rich. Why no tax on them?

There already is , capital gains when you sell since it’s not usually principal residence .
How many double taxes did you want ?


Sent from my iPhone using GTAMotorcycle.com mobile app