Ontario NDP Propose Luxury-Car Tax for Vehicles Over $90k.
The NDP party of Ontario has purposed a 3% “Luxury Vehicle tax” on all cars sold for over $90,000. This is in addition to the 13% currently paid bringing your grand total to 16% (for those who don't want to do the math).
That would mean buying a $90,000 car will cost you an extra $2,700 on top of the $11,700 you already have to pay on HST bringing your total tax liability to $14,400. The parties website say the purposed tax will only effect about 1% of auto transactions in Ontario and will bring in an estimated $12 million in additional tax revenue.
The policy is inspired by the current policy in place in British Columbia which is broken down as follows:
$55,000 to $55,999.99 5% GST + 7% PST + 1% Luxury tax
$56,000 to $56,999.99 5% GST + 7% PST + 2% Luxury tax
$57,000 to $124,999.99 5% GST + 7% PST + 3% Luxury tax
$125,000 to $149,999.99 5% GST + 7% PST + 8% Luxury tax
$150,000 and over 5% GST + 7% PST + 13% Luxury Tax
The part that isn't mentioned is how car prices have been greatly rising over the past years due to a weak Canadian dollar among other reasons. A C63 AMG which used to come fully loaded for just over $70 now pushes into the $100's with your options. If the Baby AMG won't be able to escape the tax, what will?
Typically we try to stay away from politics, but car lovers everywhere need to get the word out. We may not be able to afford these cars right now, but when that day comes are you going to be okay with paying an extra $10,000 in tax on your new McLaren?