Did You Know That McGuinty Changed The Tax Status of Fire Trucks With HST Implementation
On July 1, 2010, fire trucks became subject to HST in Ontario. Previously fire trucks were not subject to Ontario retail sales tax (ORST). Paragraph 7(1)23 of the Retail Sales Tax Act (Ontario) exempted "fire fighting vehicles, as defined by the Minister, when purchased at a price of more than $1000 per vehicle for the exclusive use of a municipality, university, public hospital, local services board or volunteer group, and repairs for such vehicles." As a result, the tax rate increased by 8%.
Many of the bodies that purchase fire trucks are engaged in exempt activities. This means that they do not recover the 8% HST/PVAT by way of an input tax credit. many of the bodies that purchase fire trucks are entitled to a partial MUSH sector rebate. However, none get 100% of the HST/PVAT back. This means fire trucks are more expensive due to unrecoverable HST.
With provincial/municipal/university/hospital and other budgets so constrained, I sincerely hope that McGuinty's decision to collect more tax on fire trucks does not cost any Ontarian their life.
By the way, I disagree with McGuinty's decision to impose HST on fire trucks. I support our hard working fire men & women who bravely put their lives on the line for us. Let me know if you agree with me and let McGuinty know that you disagree with his decision.
Cyndee Todgham Cherniak is counsel to and in affiliation with the International Trade Law and the Tax Law (Commodity Tax
"I sincerely hope that McGuinty's decision to collect more tax on fire trucks does not cost any Ontarian their life."
Totally ridiculous comment (would usually only expect politicians to make such comments).