Changes to retail sales tax on used vehicles effective April 1

Finance Minister Paul Dicks advised today that effective April 1, 1997, all vehicles purchased from persons who are registrants under the harmonized sales tax (HST) system, will be subject to the 15 per cent HST. Vehicles which are purchased from someone other than an HST registrant (a private sale) will be subject to a 15 per cent provincial sales tax at the time of registering the vehicle with the Motor Registration Division of Government Lands and Services.

Under the Highway Traffic Act, a person acquiring a motor vehicle privately is required to notify the registrar of motor vehicles within 10 days of the purchase date. Vehicles which are acquired at a private sale prior to March 31, 1997, but not registered until after April 10 (allowing 10 days to register), will be subject to the 15 per cent provincial sales tax.

The minister said that any person who has acquired a vehicle at a private sale prior to March 31, 1997 is encouraged to register the vehicle within 10 days as required by the Highway Traffic Act, and accordingly will be subject to the 12 per cent RST, not the new 15 per cent HST.

Individuals requiring more information on provincial tax matters should contact the St. John's office at 1-877-729-1695, or write the Department of Finance at P.O. Box 8720, St. John's, NF, A1B 4K1. For information on the HST, call Revenue Canada at the nearest Tax Services Office, or toll-free within the harmonized zone at 1-800-959-8286.

Contact: Karen McCarthy, Director of Communications, (709) 729- 0110.