News Release Archive

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.


Contact: David MacNeil  902-424-2933

trp                    Mar. 13, 1997 - 10:26 a.m.