Wednesday, July 23, 2008

tax break on bicycles

D: pic from Rebel Cycles/Kitchener. Jeff helpfully suggested I could retrofit a 26/20" wheeled bent with dual 26"s if only it takes a standard 1" fork at the front.

http://www.rev.gov.on.ca/english/notices/rst/61.html

"In the 2008 Ontario Budget, the government proposed to extend the point-of-sale exemption from RST for bicycles, as defined under the Highway Traffic Act, and related safety equipment. This measure was included in Bill 44, Budget Measures and Interim Appropriation Act 2008, and having received Royal Assent on May 14, 2008, is now law. As a result of this extension, the point-of-sale exemption from RST includes bicycles and related safety equipment purchased on or after December 1, 2007, and on or before December 31, 2010. The exemption is available on the purchase of new or used bicycles that have a purchase price of $1,000 or less."

D: his 'bents are ideal entry level SWB versions.
His pricing puts the price
1) above $1000
2) but includes a whole lot of accessories.
D: the problem is, this qualifies the 'basic' (not) bike for a PST tax.
For example, a 1100 all-inclusive bike would be hit by a ??? 77 dollar PST tax.
Also, the stuff that is tax-exempt includes safety equipment.
So including reflectors/horns/bells/a helmet/ and lights might be ideal.
Of course, this would leave such stuff as fenders and luggage rack as optional.
My point is that keeping the basic price below pays dividends.

The economies-of-scale are simply not there for recumbent bicycles.

Aside: my ideal touring bike is the Optima Orca.

Cheers.

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