|
|
29-08-2022, 12:15
|
#1
|
Registered User
Join Date: Aug 2022
Posts: 1
|
Canada's new luxury tax
As of Sept 1, Canada is charging a tax on any new boat sales over $250k, retroactive to Jan 1, 2022.
I'm a reporter with CBC News, looking at the impact the tax will have on the boat industry, and interested in hearing from anyone who is impacted by this, could be someone's who's putting off buying a boat, buying it in the US instead, buying used etc
I'm curious how much it may be changing people's behavior.
|
|
|
29-08-2022, 12:34
|
#2
|
Registered User
Join Date: Jan 2021
Location: USA
Boat: Privilege 39+2'
Posts: 226
|
Re: Canada's new luxury tax
Oh Canada.....
|
|
|
29-08-2022, 13:19
|
#3
|
Registered User
Join Date: Dec 2008
Location: Noank, Ct. USA
Boat: Cape Dory 31
Posts: 3,172
|
Re: Canada's new luxury tax
They failed to research the negative effect this will have on the industry and the jobs associated, as has been proven repeatedly in the U.S. and elsewhere. Why don’t they increase the tax on all their wealthy benefactors who own private jets and multiple estates….oh yeah…we never choose to tax ourselves and our friends and family…as a last resort they COULD stop spending other peoples money.
|
|
|
29-08-2022, 13:44
|
#4
|
Registered User
Join Date: Jun 2020
Posts: 870
|
Re: Canada's new luxury tax
Hi Peter (I hope I can call you Peter),
The way I had read the details of the tax, vessels of the kinds most (all?) people here in the forum will have would make them exempt.
Quote:
The following are not considered subject vehicles and will not be subject to the luxury tax:
-a recreational vehicle designed or adapted to provide temporary residential accommodations and equipped with at least four of the following:- cooking facilities
- a refrigerator or ice box
- a self-contained toilet
- a heating or air-conditioning system that can function independently of the vehicle engine
- a potable water supply system that includes a faucet and sink
- a 110-V to 125-V electric power supply, or a liquefied petroleum gas supply, that can function independently of the vehicle engine
|
Now, that said, I didn't pay Canadian taxes (in my case HST) on my last boat because it was never imported into Canada and we had no plans to do so. Our sailing would be done a little further south.
Hope all is well in Newfoundland.
Cheers.
|
|
|
29-08-2022, 13:50
|
#5
|
Registered User
Join Date: Sep 2011
Location: Montreal
Boat: Fountaine Pajot / Venezia 42
Posts: 147
|
Re: Canada's new luxury tax
Quote:
Originally Posted by pcowan
As of Sept 1, Canada is charging a tax on any new boat sales over $250k, retroactive to Jan 1, 2022.
I'm a reporter with CBC News, looking at the impact the tax will have on the boat industry, and interested in hearing from anyone who is impacted by this, could be someone's who's putting off buying a boat, buying it in the US instead, buying used etc
I'm curious how much it may be changing people's behavior.
|
What boat industry ?
How many pleasure craft boat builders are left in Canada ? They killed the industry a few years ago already.
The market is controlled by European (mainly French and German), South African and Australian companies.
|
|
|
29-08-2022, 20:58
|
#6
|
Registered User
Join Date: Nov 2006
Location: Back in Northern California working on the Ranch
Boat: Pearson 365 Sloop and 9' Fatty Knees.
Posts: 10,469
|
Re: Canada's new luxury tax
I am a Canuck living in the US. I'm surprised the Canadians didn't learn from the disastrous luxury tax that was tried in the US. It killed a lot of boat building as new boat sales fell. Then they put the Coast Guard in charge of collection.
__________________
"Life is not a journey to the grave with the intention of arriving safely in a pretty and well-preserved body, but rather to skid in broadside, thoroughly used up, totally worn out, and loudly proclaiming: Wow - what a ride!"
|
|
|
29-08-2022, 21:33
|
#7
|
Registered User
Join Date: Aug 2011
Location: Vancouver, BC
Boat: C&C Landfall 38
Posts: 821
|
Re: Canada's new luxury tax
Quote:
Originally Posted by pcowan
As of Sept 1, Canada is charging a tax on any new boat sales over $250k, retroactive to Jan 1, 2022.
I'm a reporter with CBC News, looking at the impact the tax will have on the boat industry, and interested in hearing from anyone who is impacted by this, could be someone's who's putting off buying a boat, buying it in the US instead, buying used etc
I'm curious how much it may be changing people's behavior.
|
New boat sales? Does that mean new to me, or new off the line?
|
|
|
29-08-2022, 22:15
|
#8
|
Registered User
Join Date: Nov 2020
Location: Nelson NZ
Boat: Current yacht:Alden 46, previous yachts:Cavalier 32, Joshua steel ketch -12m, Traveller 32,Rawson 30
Posts: 465
|
Re: Canada's new luxury tax
To the O.P.
Take a look at the results of Rob Muldoon's 1979 N.Z. tax on boat manufacturing. Just about killed that industry in N.Z.
https://www.pressreader.com/new-zeal...83214441849989
|
|
|
30-08-2022, 03:14
|
#9
|
Registered User
Join Date: Nov 2010
Location: Peterborough, Ontario
Boat: J/88
Posts: 793
|
Re: Canada's new luxury tax
If you buy a boat in the US for use in Canada the Luxury Tax will still apply.
I have just dropped a deal for the boat of my dreams because I have not been able to get things done in time for importation prior to the deadline.
It is my belief that many will be unprepared to pay the Luxury Tax like me and our government coffers will miss out on both the Luxury Tax and the HST meaning a net loss in tax revenue.
__________________
Never attribute to malice what can be explained away by stupidity.
|
|
|
30-08-2022, 03:19
|
#10
|
Registered User
Join Date: Nov 2010
Location: Peterborough, Ontario
Boat: J/88
Posts: 793
|
Re: Canada's new luxury tax
Further to the regressive nature of this tax, it is my understanding that the HST will be charged on the Luxury Tax.
__________________
Never attribute to malice what can be explained away by stupidity.
|
|
|
30-08-2022, 04:29
|
#11
|
Registered User
Join Date: Sep 2014
Location: Fiji Airways/ Lake Ontario
Boat: Legend 37.5, 1968 Alcort Sunfish, Avon 310
Posts: 2,749
|
Re: Canada's new luxury tax
Seems a critical question was posed by Naclydog. That should be answered first before random FB style rambling.
__________________
There are too many gaviiformes here!
|
|
|
30-08-2022, 04:58
|
#12
|
Registered User
Join Date: Nov 2010
Location: Peterborough, Ontario
Boat: J/88
Posts: 793
|
Re: Canada's new luxury tax
Quote:
Originally Posted by NaClyDog
Hi Peter (I hope I can call you Peter),
The way I had read the details of the tax, vessels of the kinds most (all?) people here in the forum will have would make them exempt.
Now, that said, I didn't pay Canadian taxes (in my case HST) on my last boat because it was never imported into Canada and we had no plans to do so. Our sailing would be done a little further south.
Hope all is well in Newfoundland.
Cheers.
|
This section of the document applies to automotive vehicles and no such exemption appears to be in place, save for floating homes, when it comes to watercraft.
__________________
Never attribute to malice what can be explained away by stupidity.
|
|
|
30-08-2022, 05:16
|
#13
|
Registered User
Join Date: Apr 2004
Location: Southern Maine
Boat: Prairie 36 Coastal Cruiser
Posts: 3,112
|
Re: Canada's new luxury tax
Quote:
Originally Posted by NaClyDog
The following are not considered subject vehicles and will not be subject to the luxury tax:
|
If I'm reading this correctly, cruising boats above the $250K price would typically meet all those requirements. So the tax would mostly apply to the higher-end center console go-fast fishing boats and such.
There does seem to be a "money is no object" attitude in this market, and a lot of conspicuous consumption. So it makes sense for the government to want to get in on the feeding frenzy.
|
|
|
30-08-2022, 05:30
|
#14
|
Registered User
Join Date: Dec 2020
Location: US Eastern Seaboard
Posts: 389
|
Re: Canada's new luxury tax
Vessels - Vessels, with a date of manufacture after 2018, and designed for leisure, recreation, or sport activities—such as a yacht, a houseboat, or any sailboat or motorboat with sleeping amenities— will be subject vessels. Floating homes, commercial fishing vessels, ferries, and cruise ships will be excluded.
|
|
|
30-08-2022, 05:30
|
#15
|
Registered User
Join Date: Jun 2020
Posts: 870
|
Re: Canada's new luxury tax
Quote:
Originally Posted by danstanford
This section of the document applies to automotive vehicles and no such exemption appears to be in place, save for floating homes, when it comes to watercraft.
|
I saw it say "vehicles". A boat is a vehicle, even our government needs to concede that point. lol
|
|
|
|
|
Thread Tools |
Search this Thread |
|
|
Display Modes |
Rate This Thread |
Linear Mode
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
Advertise Here
Recent Discussions |
|
|
|
|
|
|
|
|
|
|
|
|
Vendor Spotlight |
|
|
|
|
|