The Mudcat Café TM
Thread #88184 Message #1652675
Posted By: gnu
21-Jan-06 - 06:28 AM
Thread Name: BS: Way to go, Costco!
Subject: RE: BS: Way to go, Costco!
Re buying a vehicle in another jurisdiction with a lower sales tax rate. Anything that is registered is traceable. Remember, we're talking about the government. Many New Brunswickers found out the hard when they were required to pay the NB tax AFTER already paying the tax in another jurisdiction. Since the HST came in, it doesn't happen... much.
Of course, say you were transferred to NB from AB and bought a vehicle in NB. As long as you can show you were a resident of AB for six months after you bought the vehicle, you're clear of the NB tax. And the prices in AB are way less than here in NB.
Here's a hypothetical example of the 6 month rule. Let's say a lad from Kent County works 9 months in northern AB and returns home for the hunting and Xmas seasons, as required by Kent County Law. At the end of month three in AB, he buys a truck for $50k and it sits in the Dealer's yard until he goes home. When home, even before opening his EI claim (Employment Insurance, the dole, pogey, unemployment enjoyment), he sells it for $55k. Same truck costs 60K plus 9K HST here. Not that the boys up Kent County would ever work such a scam... year after year after year.