[w8ks6]

From the government’s perspective, if you can afford a yacht–or any boat over $250,000–then you can afford to pay a little more tax on it. “If you’ve been lucky enough, or smart enough, or hard-working enough, to afford to spend $100,000 on a car, or $250,000 on a boat – congratulations!” wrote Finance Minister, Chrystia Freeland, in the budget’s forward, “And thank you for contributing a little bit of that good fortune to help heal the wounds of COVID and invest in our future collective prosperity.” [links]

[seoservicesus]

In practice, the tax would be calculated as the lesser of 10 per cent of the full value of the boat or 20 per cent of the value above $250,000. So, for instance, a $350,000 power cruiser would be charged $20,00 in luxury tax . GST/HST is applied to the final sales price (including the luxury tax) . In Ontario, for example, the buyer would pay additional HST of $2,600 ($20,000 X 13 per cent). [links]

[franktollingu]

If you’ve been eyeing a new boat for the cottage and are worried that the new luxury tax is going to scuttle the deal, take heart. Depending on what’s on your wish list, your new boat may not even be affected. On April 19, the federal government put forth their 2021 budget and announced a luxury tax on the retail sale of new boats priced over $250,000. The new tax affects recreational powerboats, sailboats, and yachts (personal watercraft and floating homes are exempt). It also applies to new imported boats.

[slush]

Industry advocates, like National Marine Manufacturers Association (NMMA) Canada, are concerned about the negative impact the luxury tax will have on boaters, dealers, and small communities with boating economies. “ We are ready to work with the government to find new ways to generate revenue,” said Sara Anghel, NMMA Canada CEO, “But we simply can’t support a new tax that would severely damage the boating industry, put thousands of good jobs at risk, and potentially put government finances further into the red.” According to NMMA Canada analysis the impact would include an 18-22 per cent drop in sales volume and losses of $543 million to $670 million for businesses in the recreational boating sector . The part of the budget containing the luxury tax won’t be tabled until the fall and, in the meantime, Anghel plans to fight for amendments and removal. She encourages concerned cottagers to reach out to their local MPs on this issue.

[harding]

Though pricing varies greatly by make and model, cottage-type boats likely to retail for more than $250,000 include high end wake and tow boats (e.g., 25-foot Super Air Nautique) and center console offshore fishing boats (e.g., 28-foot Boston Whaler) . It’s worth noting that there are many high-quality boats in both of these categories that cost less than $250,000. Cabin cruisers, power cruisers, and motor yachts, many of which cost over $250,000, will also be affected by the tax. These boats are popular in places like Georgian Bay, Ontario and have sleeping, cooking, and bathroom accommodations for overnighting or going on extended cruises. The prices reflect the added amenities, starting at $100,000 and running into the millions .

[BitCoinPurse]

For those eagerly anticipating the delivery of their new boats this summer, there’s no need to worry. The luxury tax comes into effect January 1, 2022.

[NegativeOne]

fast forward two years to today: here

[Mariod4965]

fast forward two years to today:

[eMansipater]

I just received a letter from the ministry of finance and they want 13% of the purchase price. It's now two years later. Is there any kind of time clause, like in tort law I believe you can't sue someone after two years has passed. I know this isn't tort but really, they expect me to hold onto that money for two years and sit on it? here

[AstroBloom18x]

Hi All. I purchased a boat in 2011, it was a used boat. Sent the registration documents into the government back when I purchased the boat and I received the title in the mail (or something like it).

[playanaut]

1) I agree, as this is an old boat, taxes have already been paid on it.
2) 3 years after the sale? Ontario now wants money? Where does it stand legally? if anyone knows. [links]

[yydertt]

All requests for Clearance Certificates must be made in writing, at least two weeks before the sale takes place, and signed by the seller or the seller's authorized representative.

[chernikov]

The Clearance Certificate indicates that all taxes, penalties and interest collectable or payable by you, the seller, have been paid or that satisfactory arrangements have been made for such payment or for securing such payment. [links]

[SirArthur]

Before you can get a Clearance Certificate, all taxes you owe under the following laws must be paid: [links]

[antz123]

A purchaser cannot use identity cards other than those listed above when claiming an exemption from RST . Suppliers must charge RST on taxable sales when presented with other identity cards. more

[Thor]

Boats and aircraft are registered by the purchaser at Transport Canada federal government offices. Transport Canada does not collect tax from the purchaser at time of registration. If RST is applicable, purchasers can make payment at any ServiceOntario centre or directly to the Ministry of Finance.

[jesicaaba13]

For information on the obligation to pay the federal and provincial portions of the HST, please contact the Canada Revenue Agency at 1 800 959‑5525.

[mybassfishing]

It's normal to add conditions in the Offer To Purchase such as a satisfactory marine survey, a mechanical evaluation, and a sea trial. Many things that can go wrong with hulls and motors (and rigging) that you cannot see. Although it will cost several hundred dollars done by a qualified professional, it is strongly recommended even for a small boat before you make a legal committment.

[hamiltontak]

Get insurance immediately, even if the boat isn’t in the water. You can usually add a rider to house insurance for a small boat. A cruiser usually requires special boat insurance. [Insurance for your boat] here

[dduane]

With the Canada-European Trade Agreement (CETA) provisional implementation in 2017, customs duties on imports from a European Union (EU) country to Canada are removed or will have a tariff phase-out. (That should mean new or used boats originating from Europe will no longer have any duty.)

[idev]

An important consideration when you buy your first boat is for the entire family to take an government approved boating safety course, and take a test for a Canadian Pleasure Craft Operator Card (PCOC). Yes everyone - your kids will benefit from learning about boating, and will enjoy it more. They can also be helpful on the water as well as in an emergency.