Ontario Tax Rebate. Lease end purchase = extra tax rebate?

[Eug]

I have a Prius 2004. I claimed $1000 for my RST tax rebate on the lease.

In 2007 I purchased the car. According to the 702 RST Guide - Vehicles Powered by Alternative Fuels:

People who purchase or lease new or used vehicles licensed under the Highway Traffic Act
(e.g., automobiles, trucks, and vans) may qualify for a rebate of RST if the vehicles operate on
alternative fuels.[/b]

Does that mean I can claim the tax on my purchase, because I have now purchased a used hybrid car? I note that the total combined tax rebate, including the amount claimed for the lease and the potential amount claimed for the lease end purchase, would still be less than the $2000 maximum for the RST rebate under the 2006 guidelines.

[JimN]

<div class='quotetop'>QUOTE(Eug @ Feb 23 2007, 11:28 PM) [snapback]395646[/snapback]</div>

I have a Prius 2004. I claimed $1000 for my RST tax rebate on the lease.

In 2007 I purchased the car. According to the 702 RST Guide - Vehicles Powered by Alternative Fuels:
Does that mean I can claim the tax on my purchase, because I have now purchased a used hybrid car? I note that the total combined tax rebate, including the amount claimed for the lease and the potential amount claimed for the lease end purchase, would still be less than the $2000 maximum for the RST rebate under the 2006 guidelines.
[/b]

I am not familiar with your law but the Prius is not an alternative fuel vehicle. It burns gasoline. I don't think you qualify. Sorry.

[Eug]

<div class='quotetop'>QUOTE(JimN @ Feb 24 2007, 12:01 AM) [snapback]395660[/snapback]</div>

I am not familiar with your law but the Prius is not an alternative fuel vehicle. It burns gasoline. I don't think you qualify. Sorry.
[/b]

In our province of Ontario it does qualify, as there is a provision for "dual-powered" vehicles. The law used to exclude hybrids, but a half dozen years ago was specifically changed to include hybrids. Then, in 2006, the maximum rebate allowed was changed from $1000 to $2000. The form is attached below.

[attachmentid=6681]
What I was just wondering if it's reasonable to claim the retail sales tax (RST) rebate for the purchase of the remainder of a lease.

Facts:

1) When my car came out, the max RST rebate amount was $1000.
2) The RST rebate amount is now $2000 max (as of 2006).
3) The RST rebate applies to leased hybrids, new hybrid purchases and used hybrid purchases.
4) A while back I claimed $1000 off my lease (after around 2 years, since that's how long it took to accumulate $1000 worth of RST). This was when the max claimable was $1000.
5) When my purchased the remainder of my lease in 2007 (after the max rebate was increased to $2000), I spent another $900+ in RST, which I'm thinking I might be able to claim now. If I did claim the additional RST amount from my purchase of 2007, my total claimed would still be less than the maximum of $2000.

I think this may be worth a shot. At least with my uneducated interpretation of the form, I meet all the criteria to be able to claim the additional $900+.

[JimN]

I read the attachment and agree that it sounds like your purchase qualifies.

[Tideland Prius]

In Canada, hybrids are 'alternative fuel' vehicles.

I don't think you can apply the credit to a used hybrid. I'm surprised Ontario allows tax rebates with leases cause in BC, you have to purchase.

I'll let sarge or mark answer this.

[Sarge]

<div class='quotetop'>QUOTE(Tideland Prius @ Feb 25 2007, 02:27 AM) [snapback]396125[/snapback]</div>

In Canada, hybrids are 'alternative fuel' vehicles.

I don't think you can apply the credit to a used hybrid. I'm surprised Ontario allows tax rebates with leases cause in BC, you have to purchase.

I'll let sarge or mark answer this.
[/b]

Hmmm... interesting question! The Prius definitely qualifies (even as resale), as I received my $2K rebate this past summer on my '06 (demo car, though still considered "new"). The real question is whether a car that was leased previously and since purchased qualifies for the difference...?

I'm fairly certain that the answer will be NO, since I am pretty certain that only one rebate will be processed per VIN. When I applied for the rebate, I had to send the ORIGINAL purchase agreement (which the option to be returned after processing, which I requested), though it came back with the a big red stamp...

Ontario Retail Sales Tax Refund Processed For This Document.

Therefore, I doubt they will process it again...

Definitely worth a shot though!

Good luck and let us know how it goes...

[Eug]

<div class='quotetop'>QUOTE(Sarge @ Feb 25 2007, 08:27 PM) [snapback]396462[/snapback]</div>

Ontario Retail Sales Tax Refund Processed For This Document[/b]

Yes, lease agreements would also have this stamped on them, if a claim was made for the Ontario RST charged with the lease.

However, the lease is terminated and I have purchased the car, and was issued a new bill of sale for the purchase.

The application form's documentation specifically states that the rebate applies to used car purchases, not just new purchases. Thus, I believe it makes sense to apply since I have truly purchased a used car.

[Sarge]

<div class='quotetop'>QUOTE(Eug @ Feb 28 2007, 11:26 PM) [snapback]398263[/snapback]</div>

Yes, lease agreements would also have this stamped on them, if a claim was made for the Ontario RST charged with the lease.

However, the lease is terminated and I have purchased the car, and was issued a new bill of sale for the purchase.

The application form's documentation specifically states that the rebate applies to used car purchases, not just new purchases. Thus, I believe it makes sense to apply since I have truly purchased a used car.
[/b]

Could be... however the government has on record that they already issued a refund for that VIN to your name.

Knowing the government (and common business practice), I would imagine they will only issue ONE rebate per car per person according to the program in place at the original time of lease/purchase, but on the other hand it does not explicitly say so (as far as I read, anyway), so it is definitely worth giving it a shot!

[Eug]

I wonder how long it will be before I find out. Last time it took many, many weeks. So far this time it's been 3 weeks since they received my applications.

Fingers crossed...

[Sarge]

<div class='quotetop'>QUOTE(Eug @ Mar 23 2007, 10:29 PM) [snapback]411318[/snapback]</div>

I wonder how long it will be before I find out. Last time it took many, many weeks. So far this time it's been 3 weeks since they received my applications.

Fingers crossed...
[/b]

If I recall correctly, it took about 8 weeks to receive my PST refund when I filed it last summer.