Luxury boat (Pixabay.com)

Luxury boat (Pixabay.com)

Okanagan mayor wants boat luxury tax reconsidered

The federal levy applies to vessels valued at more than $250,000

  • May. 26, 2022 9:00 a.m.

–– Kamloops This Week

An Okanagan community is raising alarm bells about the impact of a new federal luxury tax on recreational boat owners.

The mayor of Spallumcheen, which is located about an hour-and-a-half southeast of Kamloops, between Vernon and Enderby, penned a letter to the Thompson-Nicola Regional District on the matter.

Mayor Christine Fraser called the proposed tax on the sale of boats valued at more than $250,000 “detrimental” to the livelihood of those who work in Sicamous, which is home to a bustling houseboat tourism industry during summer months.

“The local houseboat manufacturers and rental businesses are instrumental in the success of the community, as they provide employment for residents in both manufacturing and tourism industries,” the letter states. “Introducing this luxury tax will have devastating effects on the District of Sicamous, essentially crippling a large portion of their industry.”

Fraser is calling for the federal tax, which also applies to vehicles and aircraft valued at more than $100,000, to be reconsidered.

The tax is calculated as the lesser of:

• 20 per cent of the retail sale price above $250,000 for boats and $100,000 for vehicles and aircraft; or

• 10 per cent of the retail sale price of the subject boat, vehicle or aircraft.

Jessica Wallace, Kamloops This Week

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