New Canadian tax on boats

[Leo Reise]

All - the devil is in the details. Like most budgets, this is a broad outline of their intention. Personally, i do not see the Liberals exempting resale boats once the law is written. Further complicating matter I suspect is whether the vessel is licenced or registered will also be a factor. Luxury items are an easy target for governments as the items specified are out of reach for most of the citizens.

 

[bucketlist1]

Originally the Tax was scheduled for before Covid . A boat dealer I know was worried because it was based on $100 K for cars and Boats . The dealer was worried because you can spend 100 K on a big , dressed up fishing boat in Canada . I believe it was a 10 percent tax .

One of the other posters mentioned RV 's . They have a super strong association . I used to be in the Utility/ Enclosed / Race trailer business and the RV side of it got away with everything . We had to sell our Tandems , government inspected , and the buyer had to do that yearly . The RV trailers had no regulations . The Ontario government relaxed that law to business only for inspections ( over 4500 KG combined registered weights ) , but the next party will most likely switch it back - $$$$$$

I am sure there will be more $$ surprises for boats here . Marine fuel is expensive here - Where does the road tax portion go ? bet it doesn't go to our Great Lakes ?

 

[JP2]

I was in a "luxury" industry at one time. I have seen three episodes of this type of taxing in my business life; all three with the same results. What folks don't realize is the unintended consequences that hit the middle class ("non-luxury" folks) right between the eyes: unemployment in the mid-tens of thousands, people thrown out of work across the various "luxury" industries affected. It would be interesting to see the unemployment benefits paid compared to revenue from the tax. Such taxes really do put off the purchases for certain would be buyers. "Luxury Taxes" can actually be dangerous, especially when closely followed by just a mild recession.

 

[Nobskalight]

The 1991 luxury tax in the United States put many boat builders out of business.
Those who could afford to purchase boats, planes and automobiles costing more than $100,000 chose not to buy. Lots of employees and suppliers went broke.