Select Luxury Items Tax Act — S-8.35 19
Tax not payable — registered vendor of vehicles 19 (1) The tax under section 18 in respect of a subject vehicle sold by a vendor to a purchaser is not payable if an exemption certificate applies in respect of the sale of the subject vehicle in accordance with section 36 and if the vendor is a registered vendor in respect of subject vehicles or a prescribed person. Tax not payable — previously registered vehicle (2) The tax under section 18 in respect of a subject vehicle sold by a vendor to a purchaser is not payable if the subject vehicle has been registered with the Government of Canada or a province except if (a) the subject vehicle was registered only because of the sale and has never otherwise been registered with the Government of Canada or a province; or (b) the vendor (i) is Her Majesty in right of Canada or a province, an agent of Her Majesty in right of Canada or a province or an Indigenous governing body, (ii) imported the subject vehicle, and (iii) did not pay tax under section 20 in respect of the importation of the subject vehicle. Tax not payable — certain vehicles (3) The tax under section 18 in respect of a subject vehicle sold by a vendor to a purchaser is not payable if (a) the subject vehicle is equipped for policing activities and (i) the purchaser is a police authority or a military authority, or (ii) it is the case that (A) the purchaser and a police authority or military authority enter into an agreement that is a lease, licence or similar arrangement, (B) the agreement is entered into at or before the time at which the sale is completed, (C) the police authority or military authority has the right to use the subject vehicle for a period of at least six months under the agreement, (D) the purchaser transfers possession of the subject vehicle to the police authority or military authority under the agreement, and (E) the purchaser provides to the vendor, and the vendor retains, evidence satisfactory to the Minister that the conditions in clauses (A) to (D) are met in respect of the subject vehicle; or (b) the subject vehicle is equipped for military activities and (i) the purchaser is a military authority, or (ii) it is the case that (A) the purchaser and a military authority enter into an agreement that is a lease, licence or similar arrangement, (B) the agreement is entered into at or before the time at which the sale is completed, (C) the military authority has the right to use the subject vehicle for a period of at least six months under the agreement, (D) the purchaser transfers possession of the subject vehicle to the military authority under the agreement, and (E) the purchaser provides to the vendor, and the vendor retains, evidence satisfactory to the Minister that the conditions in clauses (A) to (D) are met in respect of the subject vehicle. Exemption certificate for aircraft or vessel (4) The tax under section 18 in respect of a subject aircraft or subject vessel sold by a vendor to a purchaser is not payable if an exemption certificate applies in respect of the sale in accordance with section 36 . Tax certificate for aircraft or vessel (5) The tax under section 18 in respect of a subject aircraft or subject vessel sold by a vendor to a purchaser is not payable if a tax certificate in respect of the subject aircraft or subject vessel is in effect in accordance with section 37 at the time at which the sale is completed.