Declaring Value of Bike during registration at Service Ontario

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FJRgeezer said:
I haven't bought a bike privately for a few years but I just bought a car privately. I submitted a bill of sale for about half of what the car sells for. The clerk showed me how her computer program determined what the absolutely lowest price for the cat was, and it was many thousands more than the bill of sale I submitted. So I guess they've got a system that monitors the "bluebook" value of cars and trucks, but not motorcycles? The number of motorcycles sold must be a small percentage of cars sales, so maybe it's not worth the cost of the appropriate software? Anyway that's my latest experience.
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Their software is full of ********. They declared wholesale value on my car to be $8800 when in reality its more like $3000-3500. They jack it up to get more tax $$.
 
FJRgeezer said:
I haven't bought a bike privately for a few years but I just bought a car privately. I submitted a bill of sale for about half of what the car sells for. The clerk showed me how her computer program determined what the absolutely lowest price for the cat was, and it was many thousands more than the bill of sale I submitted. So I guess they've got a system that monitors the "bluebook" value of cars and trucks, but not motorcycles? The number of motorcycles sold must be a small percentage of cars sales, so maybe it's not worth the cost of the appropriate software? Anyway that's my latest experience.
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Yea there's no book value for motorcycles for whatever reason. So the MTO calculates sales tax on the declared purchase price.
IMO, paying sales tax on private transactions for something that has already been taxed is silly. Even worse is paying tax on some BS book value that is far greater than what you paid, as in your case. This is why no one--well, almost no one--gives a flying **** about declaring a low purchase price on bikes. If book values existed for everything then you'd be paying tax on you garage sale earnings too.
 
bitzz said:
In a TRADE of vehicles between PRIVATE parties sales tax is due on the VALUE, not necessarily the price, of BOTH vehicles. Meaning you and your buddy TRADE bikes VALUED at $1000, you both pay $130 in sales tax, or you buy a bike VALUED at $1000 for $1, there is $130 of sales tax due the provincial government.
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This sounds like legitimate advice, but it doesn't make sense in the case of privately sold motorcycles. It makes sense in the case of privately sold cars, because the MOT has a "bluebook" VALUE which they use to charge you tax. If you pay less than their "bluebook" VALUE, then they charge you tax based on that lowest VALUE.

Since they don't know the VALUE of privately sold motorcycles, they ask you (and the seller) the price you paid for the vehicle, and you are taxed based on that price. Sometimes they send a follow-up letter in an attempt to catch a brotha slippin', but real G's know whats up (and several people in this thread; i.e. ignore the letters)

I'm part of the camp that believes the government shouldn't be collecting MORE taxes on items which they've already collected taxes on the FULL RETAIL VALUE, but c'est la vie.
 
DemonPig said:
... And yet there are millions of people who insist on bending over and taking it. Enjoy, I say!

When they come for your firstborn, you will gladly hand him/her over with a smile on your face. Government is so good! It always knows best.
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Oh no the self righteous pig in here will make judgment on your parents for being self entitled spoiled prick......

Pigs will always be pigs. Too bad they can breed....
 
Geez, did cops run over your meth lab or something?
 
Just declare $100, go fill your tank, and be on your merry way to increasing your carbon footprint!
 
veteq said:
Keep these in mind when declaring the amount paid:

Case 1:
A friend of mine bought a bike fully certified only to find out a couple days later that the sub frame was crashed.
He declared the value of the bike to be less than 1/2 of what he really paid for it and that is the amount he was awarded in the
court settlement.

Case 2:
Another friend had his bike stolen a few days after purchasing it and the insurance company wanted to pay the amount on the invoice.
It took a few weeks of calls and negotiating before he got the cheque for the full value of the bike.
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I call ******** on the second case, they are supposed to reimburse you the current value and they can check it out from what is on sale at dealerships or kijiji.

I bought an 05 cavalier back in 2009, in the Province of Quebec for $5500. A few months later a lady went through a stop and totaled my bike. The personal looked up the current price at the time of a 05 cavalier with 100 000km, they compared three cavalier on kijiji, avaraged the price and added the taxes and gave me $6800 (small car are more expensive here). So I don't believe your guy story. Or he had an awefull insurance company.

For the interested, if you buy out of province you can claim the price you want, even on car. We were given a car from the familly and the MTO said we can just claim it for $1 since it was out of province, so we paid 0,13$ taxes on it.
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