Up here in my home province of Ontario, the provincial government has removed the provincial sales tax (PST) on bikes under $1000. The program, introduced last December has been extended for another two years until the end of 2010.
“We want to encourage more Ontarians – young and young-at-heart – to get outdoors, spend time riding bikes as a family and with friends, or to try riding to work if possible, leaving the car at home,” said Premier McGuinty. “Together, we’re building a culture of health and well-being across Ontario by encouraging more families to embrace active living.”
The exemption applies to all bicycles that have a purchase price of $1000 or less and also to:
- Bicycle helmets
- Reflectors for bicycles
- Bicycle lights (including generators, battery operated lights)
- Bells and horns for bicycles
- Mirrors for bicycles.
It does not apply to:
- Bicycle parts
- Bicycle accessories such as carriers (baskets, tools), pumps, hoses, drinking bottles, and kickstands
- Oil and grease
- Tube repair kits.
The bit about carriers is a bit curious, as I think baskets and tools help promote the commuting aspect. It is a very encouraging development and I hope it will continue beyond the 2010 date (especially since gas is over $1.10/litre up here these days (~$4.20/gal)).