{"id":1489,"date":"2022-06-30T20:04:48","date_gmt":"2022-06-30T20:04:48","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/crescowealthmanagement\/?p=1489"},"modified":"2022-07-05T20:23:52","modified_gmt":"2022-07-05T20:23:52","slug":"coming-this-september-a-luxury-tax-on-vehicles","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/crescowealthmanagement\/2022\/06\/30\/coming-this-september-a-luxury-tax-on-vehicles\/","title":{"rendered":"Coming This September: A Luxury Tax On Vehicles"},"content":{"rendered":"

Are you planning on purchasing a luxury vehicle in the coming months?
\nBe aware that as of this fall, you are likely to experience an increase in
\nthe cost of certain luxury vehicles. While final legislation has yet to be
\nenacted at the time of writing, the federal government quietly released
\nrevised draft proposals in March for a luxury tax to be introduced as of
\nSeptember 2022. The tax will apply to cars and aircraft with a retail sales
\nprice of over $100,000 and boats valued over $250,000.<\/p>\n

The tax will be payable by a registered vendor based on the sale of the
\nluxury good delivered in Canada, similar to the way in which vendors
\nare responsible for collecting and paying the GST or provincial sales tax.<\/p>\n

It is proposed to be calculated as the lesser of:<\/p>\n

(a) 20 percent of the retail sales price that exceeds the thresholds
\nlisted above: $100,000 for cars\/aircraft and $250,000 for boats; or
\n(b) 10 percent of the full value of the luxury car, boat or aircraft.<\/p>\n

For instance, if you were to purchase a car priced at $150,000:<\/p>\n

(a) 20 percent of the retail sales price over $100,000, or $50,000 = $10,000
\n(b) 10 percent of the full value of $150,000 = $15,000
\nLuxury Tax = Lesser of (a) and (b) = $10,000
\nSub-Total Price (before provincial sales tax and GST) = $160,000
\nGST = $8,000 (based on federal government backgrounder)
\nTotal Sales Price with Luxury Tax and GST = $168,000<\/p>\n

For more information, please see the Government of Canada website
\nat: www.canada.ca\/en\/department-finance\/news\/2022\/03\/governmentreleases-<\/a>
\ndraft-legislative-proposals-to-implement-luxury-tax.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Are you planning on purchasing a luxury vehicle in the coming months? Be aware that as of this fall, you are likely to experience an increase in the cost of certain luxury vehicles. While final legislation has yet to be enacted at the time of writing, the federal government quietly released revised draft proposals in […]<\/p>\n","protected":false},"author":129,"featured_media":1490,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1489","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"\nComing This September: A Luxury Tax On Vehicles - Cresco Wealth Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/advisor.wellington-altus.ca\/crescowealthmanagement\/2022\/06\/30\/coming-this-september-a-luxury-tax-on-vehicles\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Coming This September: A Luxury Tax On Vehicles - Cresco Wealth Management\" \/>\n<meta property=\"og:description\" content=\"Are you planning on purchasing a luxury vehicle in the coming months? 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