4.2 (1) Subject to subsection (5), every purchaser of a specified vehicle shall pay to Her Majesty in right of Ontario a tax in respect of the consumption or use of the specified vehicle computed at the rate of 8 per cent of the fair market value of the specified vehicle if the purchaser acquires the vehicle before July 1, 2010 and shall not pay tax in respect of the consumption or use of the specified vehicle under section 2.  2009, c. 34, Sched. R, s. 10 (1). Same, purchases after June 30, 2010, etc. (1.1) Every purchaser of a specified vehicle shall pay to Her Majesty in right of Ontario a tax in respect of the consumption or use of the specified vehicle computed at the rate of 13 per cent of the fair market value of the specified vehicle if the purchaser, (a)  acquires the vehicle in Ontario after June 30, 2010; or (b)  acquires the vehicle in Canada but outside Ontario and, (i)  brings the vehicle into Ontario after June 30, 2010, or (ii)  receives delivery of the vehicle in Ontario after June 30, 2010.  2009, c. 34, Sched. R, s. 10 (1). Exception if severe damage or excessive use (2) Despite subsections (1) and (1.1), if both the fair value and the appraised value, as defined by the Minister, of a specified vehicle are, by reason of severe damage or excessive use, less than the average wholesale price of the specified vehicle as determined in the manner prescribed by the Minister, the tax payable under subsection (1) or (1.1) in respect of the consumption or use of the specified vehicle is the greater of the fair value or appraised value multiplied by the tax rate set out in subsection (1) or (1.1), whichever applies.  2009, c. 34, Sched. R, s. 10 (1). Definitions (3) In this section, “fair market value”, in relation to a specified vehicle, means the greater of its fair value or its average wholesale price as determined in the manner prescribed by the Minister; (“juste valeur marchande”) “gross weight”, “highway” and “motorcycle” each has the same meaning as in the Highway Traffic Act; (“poids brut”, “voie publique”, “motocyclette”) “motor vehicle” means an automobile, a truck, a van, a motorcycle or a vehicle prescribed by the Minister, that has an empty vehicle weight of not more than 2,200 kilograms and for which a permit is required under the Highway Traffic Act to drive on a highway; (“véhicule automobile”) “specified vehicle” means, (a)  for the purposes of the tax imposed under subsection (1), a motor vehicle, and (b)  for the purposes of the tax imposed under subsection (1.1), (i)  a motor vehicle or other vehicle for which a permit is required under the Highway Traffic Act to operate on a highway, (ii)  an off-road vehicle or motorized snow vehicle for which a permit is required under the Off-Road Vehicles Act, or the Motorized Snow Vehicles Act, (iii)  aircraft, (iv)  a vessel, or (v)  another type of vehicle prescribed by the Minister. (“véhicule déterminé”)  1993, c. 12, s. 5; 1996, c. 29, s. 25; 2009, c. 34, Sched. R, s. 10 (2-4). Minister approved industry standard publications (3.1) A regulation prescribing the manner for determining the average wholesale price of a specified vehicle may require that the price be determined by reference to an industry standard publication approved by the Minister. 2016, c. 37, Sched. 22, s. 1. Names of approved publications available (3.2) The name of any industry standard publication approved by the Minister shall be made available to the public on a government website and in any other manner that the Minister considers appropriate, and shall remain available to the public. 2016, c. 37, Sched. 22, s. 1. Exemptions (4) Subsections (1) and (1.1) do not apply in respect of a specified vehicle that is, (a)  a settler’s effect referred to in paragraph 58 of subsection 7 (1); (b)  tangible personal property referred to in paragraph 59 of subsection 7 (1); (b.1)  acquired after June 30, 2010 by a purchaser at a sale that is, (i)  a taxable supply by a registrant under Part IX of the Excise Tax Act (Canada), or (ii)  an exempt supply under Part I of Schedule V to the Excise Tax Act (Canada), other than an exempt supply prescribed by the Minister; (b.2)  acquired after June 30, 2010 and that would have been exempt from tax under this Act if it had been acquired before July 1, 2010; (c)  acquired by a person by bequest; (d)  acquired by a person by gift from a member of his or her family, as defined in subsection 8 (2), from his or her brother or sister or from any other individual of a class prescribed by the Minister, if the vehicle has not been transferred on a tax-exempt basis under this clause within the 12-month period immediately preceding the acquisition; (d.1)  acquired by a school, college or university as a gift; (e)  acquired from the person’s spouse or former spouse, if the acquisition is the result of the breakdown or dissolution of the conjugal relationship of the person and the spouse or former spouse and is in satisfaction of the person’s rights under the Family Law Act; or (f)  acquired through a transaction prescribed by the Minister.  1993, c. 12, s. 5; 1994, c. 13, s. 6; 1999, c. 6, s. 59 (1); 2000, c. 10, s. 27; 2005, c. 5, s. 62 (1); 2009, c. 34, Sched. R, s. 10 (5-7). Gift from brother or sister before July 1, 2010 (4.1) Clause (4) (d) does not apply to a specified vehicle acquired by a person before July 1, 2010 by gift from his or her brother or sister.  2010, c. 1, Sched. 25, s. 6. Application of s. 2 (5) Despite subsection (1) and subject to subsection (5.1), section 2 applies in respect of a specified vehicle that is, (a)  sold by a vendor who is registered under the Motor Vehicle Dealers Act, 2002 as a motor vehicle dealer and who holds a valid permit issued under section 5; (b)  acquired under a lease or rental from a vendor; (c)  acquired by a lessee through the exercise of an option or similar right to acquire the vehicle contained in the lessee’s lease or rental agreement from a vendor; or (d)  a vehicle whose average wholesale price as determined in the manner prescribed by the Minister is less than $1,000.  1993, c. 12, s. 5; 2002, c. 30, Sched. E, s. 18; 2009, c. 34, Sched. R, s. 10 (8-10). When subs. (5) not applicable (5.1) If tax is not payable under section 2 in respect of a specified vehicle by reason of section 2.0.0.1, subsection (5) does not apply and tax is payable under this section.  2009, c. 34, Sched. R, s. 10 (11). Deemed purchaser (6) A purchaser of a specified vehicle is subject to pay tax under this section if, (a)  the vehicle is purchased before July 1, 2010 and the sale of the vehicle to the purchaser is not the first sale of the vehicle at a retail sale in Ontario; (b)  the vehicle is purchased at a sale in Ontario after June 30, 2010 or brought into Ontario after that day, or delivery of the vehicle is received in Ontario after that day; (c)  the sale of the vehicle to the purchaser occurs after the vehicle is first brought into Ontario and tax was paid or ought to have been paid by the seller of the vehicle under subsection 2 (18) or the seller was exempt from tax under this Act; or (d)  the purchaser is a shareholder of a corporation and acquires the specified vehicle at a sale as defined in clause (i) of the definition of “sale” in subsection 1 (1).  2009, c. 34, Sched. R, s. 10 (12). Time of payment (7) A purchaser shall pay the tax imposed under this section, (a)  at the time the purchaser applies for a permit for the vehicle under the Highway Traffic Act, the Off-Road Vehicles Act or the Motorized Snow Vehicles Act, as the case may be; or (b)  at the time of the sale or, if the purchaser purchased the vehicle in Canada but outside Ontario, at the time the purchaser brings the vehicle into Ontario or receives delivery of the vehicle in Ontario.  2009, c. 34, Sched. R, s. 10 (12). Those claiming exemption (8) A person claiming an exemption from taxation under subsection (4) shall provide the documentation prescribed by the Minister to, (a)  the person authorized by the Minister under section 11, at the time the person applies for a permit under the Highway Traffic Act, the Off-Road Vehicles Act or the Motorized Snow Vehicles Act, if a permit is required under any of those Acts; or (b)  the Minister in the manner and at the time prescribed by the Minister in any other case.  2009, c. 34, Sched. R, s. 10 (12). Refund of tax (9) If a purchaser of a specified vehicle pays tax under subsection (1) or (1.1) but could have paid tax under subsection (2) by providing an appraisal of the specified vehicle at the time the tax was paid, the Minister may refund to the purchaser an amount equal to the difference between the tax paid and the tax payable upon such terms and conditions as the Minister may prescribe.  1993, c. 12, s. 5; 2009, c. 34, Sched. R, s. 10 (13). Definition (10) In this section, “spouse” has the meaning given to that expression by section 29 of the Family Law Act.  1999, c. 6, s. 59 (2); 2005, c. 5, s. 62 (2). Section Amendments with date in force (d/m/y) 1993, c. 12, s. 5 - 01/10/1992; 1994, c. 13, s. 6 - 01/10/1992; 1996, c. 29, s. 25 - 09/12/1996; 1999, c. 6, s. 59 (1, 2) - 01/03/2000 2000, c. 10, s. 27
- 03/05/2000 2002, c. 30, Sched. E, s. 18 - 01/01/2010 2005, c. 5, s. 62 (1, 2)
- 09/03/2005 2009, c. 34, Sched. R, s. 10 (1-13) - 15/12/2009 2010, c. 1, Sched. 25, s. 6 - 15/12/2009 2016, c. 37, Sched. 22, s. 1 - 08/12/2016 Vendor permits