provincial sales tax

[COUPE DE GRACE]

what are nsx listed at the license bureau when you pay the 8% sales tax to get your plates....when you buy from a dealer or import it you pay on contract price from a private seller they (bureau) tell you what the value is whether you got a good deal and payed less you pay 8% on their list price ....has anyone purchased a 2001 and up lately from a private seller or have stories on any year

 

[slightlyevil]

When a car is purchased, the purchaser pays the MTO tax on the car. This amount varies by province. Provinces list the 'wholesale' value of a car, which is almost always much less than the retail value of the car. Let's say for arguement's sake you buy an NSX for $40k exactly. The gov't may say the wholesale value on the car is $30k (I'm guessing), but if you declare to the gov't that you only paid $25k for the car in an attempt to save money on taxes, they won't care. You still have to pay tax on at LEAST the wholesale value ($30k). This is what they consider the minimum fair-market value of the car, and it's to avoid being screwed by every person who would declare their brand new Gallardo only cost them $12,675.

If you buy from a private seller, it is easier to report at or close to this price. If you buy from a reputable dealer it is unlikely they will report their sale-price as near the wholesale price (unless it IS for some reason ie. you raked them over the coals in negotiations haha).

Here's the upshot - even IF you legitimately managed to get an NSX for BELOW the gov't "wholesale value" you still have to pay tax on the wholesale value.

If you wish to know what the gov't considers the wholesale value of XYZ car currently, you can obtain a UVIP from the MTO at any office with the VIN or Licence plate of the car (yes, license plate) and $10.

Smiles optional.

Hope that helps!

 

[COUPE DE GRACE]

called CAA ...they have the value that the sales tax is based on when licensing vehicules ...10 years and older is no longer listed ( 2001 and under ) so the transaction goes with what you declare you paid to a private seller if from a dealer you pay on contract price.... on a 2002 nsx the value is listed at between $46,and $56,000 i beleive they base it on the mileage so a low mileage would be the higher evaluation....8% = another $4000.00 .....

 

[Joy2Drive]

I know this is not what you are asking, but eventually what it boils down to is the bill of sale value and how it is declared at the border.

I know Red has mentioned this before but it doesn't hurt to repeat here. Be careful if you are tempted to declare a lower value to save taxes as many have been caught doing it and have their car impounded for months and slapped with hefty fines. Especially if you are buying an older model where they are not provided with a value, resist the temptation or at least be sensible about it.

http://autos.sympatico.ca/auto-news/7904/canadians-caught-trying-to-smuggle-cars-over-border

 

[WPG_NSX]

Not sure how it is in Ontario, but in Manitoba this is what I do:
I just recently purchased a 96 2 months ago, and paid the 5% gst at the border, but your not obliged to pay provincial tax until you register it. I just keep the X under ownership but do not register it......when spring rolls around and want to drive it, I will get a 30 day temporary insurance which is about $170/month for about 7 months of driving before winter hits again. I will continue pay this for each month. This may sound a little crazy, but here are my reasons:
1. You don't have to pay tax on what you paid, in my case it would of been about $2100.
2. I don't get any photo radar tickets...ie red light camera or mobile units. which usually saves me at least 1 ticket a year......a value of about $200 and up for each ticket.

I don't usually keep cars for long periods of time, therefor coughing up the 7% tax to me seems wasteful.

 

[COUPE DE GRACE]

to make it perfectly clear the way I;m undertstanding this is if I import a 2003 asking price $40,000 (70,000 miles ) after paying the 6% duty and the 5% fed tax the total is app. $45,000 cdn I would pay the 8% tax NOT on the price listed from the border paper work but pay on the wholesale price at license bureau which would be app. $ 20 thousand more and add another $1600 to purchase....right or wrong

 

[Joy2Drive]

Based on Slightlyevil's post above, you would be correct (paying 8% on the wholesale value to have the car licensed in Ontario, even if actual purchase price is less).

Why don't you call MTO and find out once and for all and post your findings?