News Release Archive
BUSINESS/CONSUMER SERVICES--TAX REBATES TO FIRE DEPARTMENTS ----------------------------------------------------------------- A new provincial rebate program will ensure that municipal and volunteer fire departments will pay the same tax on fire and emergency vehicles after the introduction of the Harmonized Sales Tax (HST) as they paid prior to the HST, Business and Consumer Services Minister Sandy Jolly announced today. "The Nova Scotia government realizes the importance of fire departments across the province, and their special role in rural communities," Ms. Jolly said. "It may take years of fund raising for a small community department to purchase a vehicle. We want to protect as best we can their purchasing power after the introduction of the HST." Today, a volunteer fire department that is registered as a charitable organization receives a rebate of 50 per cent of the Goods and Services Tax (GST) paid on a new or used fire truck. There is currently no provincial sales tax on these vehicles. For example, after the GST rebate, the final purchase price of a $100,000 vehicle is $103,500. A vehicle bought by a municipal fire department, or for a volunteer department through the municipality, currently receives a GST rebate of 57.14 per cent, so a $100,000 vehicle would cost $103,000. After April 1, the 15 per cent HST will be applied. Volunteer and municipal fire departments will still receive HST rebates of 50 and 57.14 per cent of the tax respectively, but will receive an additional rebate from the province to ensure that the final tax paid will be the same as if the vehicle was purchased before the application of the HST. There is a price cap of $185,000 in order to be eligible for the additional provincial rebate. Information about the rebate program will be sent to all Nova Scotia fire departments. -30- Contact: David MacNeil 902-424-2933 trp Mar. 13, 1997 - 10:26 a.m.