Select Luxury Items Tax Act (S.C. 2022, c. 10, s. 135)

Marginal note:Tax — registration of registered vendor’s vehicle

• 23 (1) Subject to this Act, if a registered vendor in respect of subject vehicles is an owner of a subject vehicle at a particular time, if the subject vehicle is registered at the particular time with the Government of Canada or a province, if the subject vehicle has never otherwise been registered with the Government of Canada or a province and if the taxable amount of the subject vehicle exceeds the price threshold in respect of the subject vehicle, the registered vendor must pay to Her Majesty in right of Canada tax in respect of the subject vehicle in the amount determined under section 34.

• Marginal note:When tax payable

  (2) The tax under subsection (1) becomes payable at the particular time referred to in that subsection.

• Marginal note:Tax not payable

  (3) The tax under subsection (1) in respect of a registration of a subject vehicle owned by a registered vendor is not payable if the registration of the subject vehicle is done only because

  • (a) the subject vehicle is sold by the registered vendor to a purchaser; or

  • (b) the right to use the subject vehicle is provided by the registered vendor to a person under a lease, licence or similar arrangement.

• Marginal note:Taxable amount

  (4) Subject to subsection (5), the taxable amount of a subject vehicle that is owned by a registered vendor is, for the purposes of this section and for the purposes of determining under section 34 the amount of tax payable under this section, the amount determined by the formula

  A + B

  where

  A

  is the greater of

  • (a) the retail value of the subject vehicle at the time at which the subject vehicle is registered with the Government of Canada or a province, and

  • (b) the retail value of the subject vehicle at the time at which the registered vendor first uses the subject vehicle; and

  B

  is a prescribed amount.

• Marginal note:Taxable amount — regulations

  (5) For the purposes of this section and for the purposes of determining under section 34 the amount of tax payable under this section, the taxable amount of a subject vehicle in prescribed circumstances is to be determined in prescribed manner.