Used Boats In Canada Are Going To have A Better Resale Value

[Midnightsun]

Looks like the federal government has imposed a "luxury" tax of 20% on new boats over $250,000. Not sure a new Carver can be had for less han this. https://www.ctvnews.ca/politics/luxury- ... -1.5393511

[pepmyster]

Now that's the proper way to kill a product. Not bad!!! Also to kill dreams of the working class.

[Viper]

On the bright side, it could have been much worse. I keep saying a number of things including technological advances are pushing the small guy out of boating. That market is nowhere near $100K but traditionally makes up a huge percentage of used boat sales.

This will affect boat sales though. They're smart, they know that when COVID is behind us, there will be a flood of large boats in that range on the market that they will reap the tax benefits from. What happens to the number of sales at that time remains to be seen.

[tomschauer]

They instituted a Luxury tax down here on anything over 75k in the 80's. It put Trojan and several others out of business and was repealed two years later after the damage was done.

[Midnightsun]

So we are all wondering who and where is the money going to come from that the governments are handing out, this is just the beginning of additional costs to everyone.

I'm surprised they have not gone after tax and registration on used boats. Here in Quebec, there is no Provincial or Federal tax on all private used boat sales, registration is free and lasts forever as in no renewal required however I think they recently changed this and now one must register every 5 or 10 years, regardless it is still free. I think it was more a move to keep records up to date than anything else. There would be a substantial amount revenue from all privately sold used power boat sales that exchange hands and would equate to 10 fold what they could bring in on this luxury tax.

[km1125]

Source of the post They instituted a Luxury tax down here on anything over 75k in the 80's. It put Trojan and several others out of business and was repealed two years later after the damage was done.

Sick thing is there was no recourse for any of those companies or employees.

But I do remember when they instituted that and specifically a quote from one woman they interviewed. This was back when a nice Cadillac could be bought for just over $35K, which was the threshold for the "luxury tax". The woman - who was on welfare - was quoted as saying "Just how am I supposed to afford one of those now?" !!

[bud37]

In Ontario there is a tremendous amount of tax income from a boat sale....brokers sales tax, surveyors sales tax, the marina sales tax on work for the sale and the tax on the boat sale itself.
A few years back Ontario started to go back on boat sales records and check whether tax was collected, paid and by who....they were looking for their share as quite a few people did not pay up front hoping it would get missed and it did many times.
In Ontario we pay tax on tax on the tax in some cases......but how else do the bills get paid ? Hard to take though.

[Viper]

You pay for the bills by spending our hard earned tax money wisely instead of implementing another money grab to cover for your careless spending. We already work from January to July just to cover taxes before we actually pocket anything. I think that's enough!

[bud37]

Maybe if everyone paid their fair share instead of finding ways to avoid tax. I pay tax as well, but I do understand that there is a need to cover the bills and not just print money. Tax from this sector is considered high income recreation perhaps....better to get it from here than lower income paychecks.

Sorry this has now gone beyond boating in general....

[km1125]

I honestly think this kind of tax is absurd. How can someone purchasing a $240,000 boat pay none of this tax but a person buying a $260,000 boat pays an extra $26,000, and how is that "fair" or "equitable"??