Luxury Tax Coming ...

For those not in the United States
Post Reply
BobRae99
Vice Admiral
Vice Admiral
Posts: 1141
Joined: Mon Jan 22, 2018 10:16 am
Location: Canada
Contact:

Luxury Tax Coming ...

Post by BobRae99 »

Liberal government just announced a 20% luxury tax on boats costing over $250,000. The tax will be 20% of the value over $250,000 or 10% of the total purchase whichever is lower.

Bast**ds!
2019 Cobalt R3 - V8/350 - Ebony Hull w/ Knock Out Red Edge Stripe
dustinm
Vice Admiral
Vice Admiral
Posts: 1321
Joined: Sat Jul 04, 2020 7:23 pm
Location: Iowa
Contact:

Re: Luxury Tax Coming ...

Post by dustinm »

There may some silver lining here, manufactures may pull back a little on their pricing.
CS23
BobRae99
Vice Admiral
Vice Admiral
Posts: 1141
Joined: Mon Jan 22, 2018 10:16 am
Location: Canada
Contact:

Re: Luxury Tax Coming ...

Post by BobRae99 »

dustinm wrote: Tue Apr 20, 2021 12:26 pm There may some silver lining here, manufactures may pull back a little on their pricing.
Good luck with that. I'm shopping for a 911. the dealers don't have new cars and don't have allocations for delivery before August (my dealer has one allocation). So most people will likely have to wait until after the new tax takes effect to take delivery. My dealer is worried. A typical 911 goes out the door here (pre tax) for about $150 - $160,000. That adds $10 - 12,000 in tax - no small amount.
2019 Cobalt R3 - V8/350 - Ebony Hull w/ Knock Out Red Edge Stripe
User avatar
Krob1114
Vice Admiral
Vice Admiral
Posts: 1791
Joined: Sun Jun 09, 2019 8:03 am
Location: Greer’s Ferry Lake, AR
Contact:

Re: Luxury Tax Coming ...

Post by Krob1114 »

BobRae99 wrote: Tue Apr 20, 2021 10:57 am Liberal government just announced a 20% luxury tax on boats costing over $250,000. The tax will be 20% of the value over $250,000 or 10% of the total purchase whichever is lower.

Bast**ds!
Is this just Canada?
"Liberal government" could be anywhere.
2019 Cobalt R3 @ Greers Ferry Lake, AR
Home in Hernando, MS
Norris_Boating
Captain
Captain
Posts: 440
Joined: Sat May 19, 2018 7:19 am
Location: Tennessee
Contact:

Re: Luxury Tax Coming ...

Post by Norris_Boating »

BobRae99 wrote: Tue Apr 20, 2021 10:57 am Liberal government just announced a 20% luxury tax on boats costing over $250,000. The tax will be 20% of the value over $250,000 or 10% of the total purchase whichever is lower.

Bast**ds!
I bet it isn't pegged to inflation either, which just means it will be most boats 10 years from now.
I wonder if this also applies to commercial vessels.
2016 220
2019 R7 Surf
White and Red V8-380CE EVC DP (FWD) - 380 hp
User avatar
bruceb58
Vice Admiral
Vice Admiral
Posts: 1062
Joined: Tue Nov 24, 2020 11:10 pm
Location: Los Angeles
Contact:

Re: Luxury Tax Coming ...

Post by bruceb58 »

Last time there was a luxury tax, it was put in by HW Bush and removed by Clinton. I kinda doubt it will happen.
2017 R5 350HP Mercruiser Bravo III
Northridge, CA
Big Bear Lake, CA
South Lake Tahoe, CA
mdadgar
Rear Admiral
Rear Admiral
Posts: 517
Joined: Mon Aug 13, 2018 12:22 pm
Location: SF Bay Area
Contact:

Re: Luxury Tax Coming ...

Post by mdadgar »

bruceb58 wrote: Tue Apr 20, 2021 9:24 pm Last time there was a luxury tax, it was put in by HW Bush and removed by Clinton. I kinda doubt it will happen.
The OP was Canadian, so talking about Canada.

I agree - a lux tax that hits mass market boats, even expensive ones, is going to be a tough sell in the USA.

Now things like private jets - I'm ok with that. If you can afford the jet, you can afford the tax.

- Mark
2013 Cobalt A25, 6.0 VP 380hp "More Cowbell"
Monte Sereno, CA (winter) | Lake Don Pedro (summer)
Boats are for when I'm not racing cars
Norris_Boating
Captain
Captain
Posts: 440
Joined: Sat May 19, 2018 7:19 am
Location: Tennessee
Contact:

Re: Luxury Tax Coming ...

Post by Norris_Boating »

mdadgar wrote: Tue Apr 20, 2021 9:58 pm
Now things like private jets - I'm ok with that. If you can afford the jet, you can afford the tax.

- Mark
You know, the income tax started out as a tax targeting the top 1%, be careful what you ask for.
I bet there are plenty of people that can't afford a boat that would say the same thing you just said about planes.
2016 220
2019 R7 Surf
White and Red V8-380CE EVC DP (FWD) - 380 hp
BobRae99
Vice Admiral
Vice Admiral
Posts: 1141
Joined: Mon Jan 22, 2018 10:16 am
Location: Canada
Contact:

Re: Luxury Tax Coming ...

Post by BobRae99 »

mdadgar wrote: Tue Apr 20, 2021 9:58 pm
bruceb58 wrote: Tue Apr 20, 2021 9:24 pm Last time there was a luxury tax, it was put in by HW Bush and removed by Clinton. I kinda doubt it will happen.

Now things like private jets - I'm ok with that. If you can afford the jet, you can afford the tax.

- Mark
That is exactly what the Canadian finance minister said with respect to $100,000+ cars and $250,000+ boats. But, the guy who buys the $75M Gulfstream G700 won't be too happy about the $7.5M luxury tax. Of course business (commercial) use vessels and aircraft aren't included.
2019 Cobalt R3 - V8/350 - Ebony Hull w/ Knock Out Red Edge Stripe
mdadgar
Rear Admiral
Rear Admiral
Posts: 517
Joined: Mon Aug 13, 2018 12:22 pm
Location: SF Bay Area
Contact:

Re: Luxury Tax Coming ...

Post by mdadgar »

Norris_Boating wrote: Wed Apr 21, 2021 6:22 am
mdadgar wrote: Tue Apr 20, 2021 9:58 pm
Now things like private jets - I'm ok with that. If you can afford the jet, you can afford the tax.

- Mark
You know, the income tax started out as a tax targeting the top 1%, be careful what you ask for.
I bet there are plenty of people that can't afford a boat that would say the same thing you just said about planes.
I live in one of the very highest tax places in the country, so I get it. But I stand behind it.

Honestly, I would prefer we raised the tax on corporations and lowered the tax on individuals. But that's a different thread on a different forum.

- Mark
2013 Cobalt A25, 6.0 VP 380hp "More Cowbell"
Monte Sereno, CA (winter) | Lake Don Pedro (summer)
Boats are for when I'm not racing cars
Post Reply

Who is online

Users browsing this forum: No registered users and 0 guests