tax question

[Infrared]

may be wrong forum, but i just about to buy a pre-owned car.
and i don't understand - how comes when you buy a new house, you pay taxes. when you sell it, a new owner doesn't pay tax on it.
when you buy a new car, you pay taxes. when i buy pre-owned one, i pay tax again on the same car.
why???!!!

[Tomy]

may be wrong forum, but i just about to buy a pre-owned car.
and i don't understand - how comes when you buy a new house, you pay taxes. when you sell it, a new owner doesn't pay tax on it.
when you buy a new car, you pay taxes. when i buy pre-owned one, i pay tax again on the same car.
why???!!!

i thought u only pay one tax on used car..
but u pay both taxes if it's from a stealership

[robster77]

Agreed, sounds odd. The government won't tax the same thing twice.

[Tacoma]

Yes, retail sales tax is charged on a used car and GST is charged if you buy from a dealer but not if you buy privately.

Much of tax legislation were politically motivated, so if you're trying to make logical sense out of it, you're wasting your time.

[Infrared]

I can't find what i am looking for privately (Highlander 2007-2008), but dealership also charges Toyota certification fee on top of all taxes ($399!) :mad:

[User Name]

Why don't you ask for a bigger discount on the car itself.

I can't find what i am looking for privately (Highlander 2007-2008), but dealership also charges Toyota certification fee on top of all taxes ($399!) :mad:

[macnut]

.. i don't understand - how comes when you buy a new house, you pay taxes. when you sell it, a new owner doesn't pay tax on it.

A few points to keep in mind to make some sense of it - but not complete sense:

- the GST is a Goods and Services Tax

- when you buy a brand new home, GST is involved because there is GST on the materials/goods

- when you buy a car from a dealer, whether new or used, GST is involved because a licenced dealer is providing a service (as well as supplying goods)

- a used car from a dealer has been "reconditioned" (in most cases) and can therefore be taxed as goods even though that was done once already when it was brand new

That's about as sound a case as I can come up with.

[cynick]

Good explanations so far.
In addition to the explanations above - the government charges taxes because they can. If they could go away with charging 8% or 13% on old houses, they would.
Next year, with HST coming to Ontario, we'd be paying 13% TAX for any car used or new, purchased privately or from a dealer..