TORONTO, Ont. – Changes to the administration of the Multi-Jurisdictional Vehicle Tax (MJVT), that would allow appraisals to establish vehicle value when transferring vehicles from multi-jurisdictional to Ontario use, are good news for Ontario truckers, said OTA President David Bradley.
These changes, as well as further funds for Ontario roads, were announced in the Ontario budget yesterday. OTA has been lobbying the government to make the administration of the tax fairer, including allowing appraisals. “I’m very pleased that the government has moved forward on this issue”, Bradley said. “There’s still more work to be done to make this tax equitable, but the fact that the government has recognized the need for changes and has moved forward on the use of appraisals is a good first step.”
Currently, when transferring a vehicle from multi-jurisdictional to Ontario only use, carriers are required to pay an “exit tax” based on a value assigned by the Ministry of Finance based on a fixed depreciation schedule. Once this change is enacted, the owner of the truck can appeal that predetermined value by to an independent appraisal of the true value of the vehicle.
Appraisals will only be permitted for vehicles purchased after Sept. 30, 2001, owned by the same person for more than 60 months, and where the MJVT was paid rather than point of sale retail sales tax.
Bradley went on to add that he was also pleased to see that the budget contains a specific reference to the importance of the trucking industry to Ontario’s economy and a commitment to make significant investments in highway infrastructure in order to improve the flow of goods on trucks.
“The budget acknowledges the fact that 70 per cent of all freight shipped in Ontario moves by truck”, Bradley said. “In recognition of the importance of improving the flow of goods the budget makes a specific commitment to focus transportation spending on key economic corridors like the 401 as well as at our borders with the U.S.”
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