VANCOUVER – The Mayors’ Council says if the transit plebiscite passes in May, the Metro Vancouver Congestion Improvement Tax (MVCIT) will apply to newly purchased vehicles based on its place of registration, not where it is purchased.
Mayor Gregor Robertson, the Council chair, says they were responding to concerns from Metro Vancouver’s new car dealerships and the public that people will go outside of Metro Vancouver to buy a new vehicle and avoid paying the extra tax.
There was speculation there could be a possible exodus out of Metro Vancouver to places like Abbotsford to buy cars and goods for the home.
“It’s almost a mini-United States,” said Jordan Bateman of the Canadian Taxpayers Federation, in January. “There’s a reason why we’ve seen the highest number of crossings into Whatcom County since the mid-90s. We’re seeing a similar outflow of people to Abbotsford and Mission to buy cheap gas and soon cheaper goods.”
However, new cars can be taken off that list.
ICBC currently requires that vehicles be registered based on the place of residence, which helps determine rates. If the transit plebiscite passes, ICBC would collect the MVCIT increment at the time of vehicle registration.
The ballots started to arrive in Metro Vancouver mailboxes earlier this week.
The ballot gives more than 1.5 million eligible voters the option of paying 0.5 per cent sales tax in exchange for a vastly upgraded rapid transit system, hundreds more buses, additional ferries and a new bridge.
Metro Vancouver residents have until May 29 to submit their vote.
– With files from Yuliya Talmazan
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