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Special Cases
When the real purchase price is less than the average wholesale value shown on the UVIP as a result of excessive wear or severe damage, the vehicle may be appraised and the tax will payable on the greater of the purchase price or the appraised value.
Appraisals must he obtained by the current purchaser and must he done within 60 days of the date of sale.
Appraisals may be obtained from the following two groups
1. Motor Vehicle Dealers that are licenced under the Motor Vehicle Dealers Act and who are registered vendors under the Retail Sales Tax Act and are primarily involved in the business of selling cars.
2. Recognized independent appraisers.
The appraisal form (available at the licence issuing offices) must be filled out completely to be accepted. The minimum information required is:
  • Dealer/Appraiser Name
  • Dealer/Appraiser Address
  • Dealer/Appraiser Number
  • Vehicle Description (including V.I.N.)
  • Appraised Value
  • Signature of person performing appraisal

Please note that the final determination of the validity of the appraisal will be made by the Ministry of Finance, Retail Sales Tax Branch. The Ministry of Finance will review all Motor Vehicle Appraisal Records and if any are found to be invalid, the purchasers will be assessed for tax payable. Tax will be collected on the greater of the purchase price OR appraised value

Vehicles Taken in Lieu of Funds
When a used motor vehicle is provided in lieu of an outstanding debt, sales tax will be payable on the fair market value of the vehicle. This same rule applies to used motor vehicles that are provided to employees by their employers as a bonus or payment of wages.
Antique Vehicles Registered with Historic Plates
At time of transfer, purchaser must provide a copy of the appraisal document, or a copy of their insurance policy, showing the amount the vehicle has been insured for. Retail Sales Tax will be payable on the greater of the purchase price or appraisal/insured value.
Vehicles Written-Off by Insurance Companies
These vehicles are usually sold to wreckers who are registered with the Ministry of Finance, the Ministry of Consumer and Commercial Relations and MTO. Therefore, the wreckers are entitled to transfer vehicles exempt of sales tax. If the vehicles are sold to persons who are not valid Dealers/Vendors or "C" status MTO registrants, tax must be paid on the Fair Market Value at the time of transfer.
Vehicles Transferred from Single to Joint or Joint to Single Ownership
Unless documentation from the Ministry of Finance is presented that would provide for exemption, tax must be paid on the Fair Market Value for the vehicle at time of transfer.
When one of the names shows on the old and on the new registration that person may apply for refund of 50% of the taxes paid.
Vehicles Rebuilt from Part and Vehicles Built from Kits
Motor vehicles that have been rebuilt from parts are taxable at the time of transfer on the declared value. Also, motor vehicles that are purchased as "Kits" will have tax paid on declared value. If all applicable retail sales tax has been paid on the parts, the declared value for tax may be $ 0. These vehicles will be registered with the models "RBI" (Rebuilt) or "KIT" as appropriate.
An exemption to paying tax on the declared value would apply when a person has more than one vehicle already registered and uses parts from them to construct one vehicle from the parts. If the person is registering this new vehicle as a "RBT", (Rebuilt) no tax is payable
Vehicles Transferred with Other Property
At time of transfer, tax must be paid on the Fair Market Value for the vehicle. Additional taxable tangible personal property, i.e. boat, motor, stereo, helmet, etc., purchased along with the vehicle is subject to Retail Sales Tax at the same time.
NOTE: If the buyer provides an appraisal to show the vehicle has a value lower than fair market value as a result of severe damage or excessive wear, then tax would be payable on the greater of declared value or the appraised value.
The value of a motor vehicle accepted as a trade-in on the private purchase of another motor vehicle no longer reduces the total purchase price for the purposes of calculating sales tax. Although tax is payable on the fair market value of the motor vehicle being purchased, it would be difficult in most cases to determine the purchase price when part of the payment is comprised of a trade-in. As a result, tax is payable by both parties on the average wholesale value of each vehicle being transferred.
Ludicrous Value
It is possible that the Red Book value of a vehicle could be obviously wrong by several thousands of dollars. i.e., 1978 Chevrolet Caprice with a value listed of $60,800. If this situation occurs, the transfer may be completed using the purchase price of the vehicle.
Vehicles Imported into Ontario
All vehicles imported from other jurisdiction (State, Province or Country) are subject to Ontario Retail Sales Tax on the Fair Market Value. If the vehicle has paid duties and taxes to Revenue Canada, it will be taxable on the amount taken by revenue Canada as the base price to collect GST.
If the registrant is a new settler the registration will be exempted from Ontario RST. The registrant must supply proof that he is a new comer in to the province.
Gift of used vehicles between parents and children (also step-children), grand-children and grand-parents, between spouses or in-laws are exempted from RST. A sworn statement (affidavit) signed by both the donor and the recipient is required.
Gifts between siblings are not exempted from taxes.

For more information on gifts see the section Transfer of Vehicles
Gifts between Corporations and Its Shareholders
Transfer of vehicles between corporations and its shareholders are tax exempted if the shareholder and his/her immediate family (spouse, parents, children) own more than 95% of the shares as confirmed by special declaration of the Lawyer or accountant of the Corporation. The letter must indicate that he/she has personal knowledge of the current total issued and outstanding share capital of the corporation and stated dollar value of all issued and outstanding shares of each class. An affidavit is also required indicating that the transfer is done for no consideration ( no money exchange hands), and the original bill of sale from the dealer or proof of taxes paid by the current owner (the corporation or the shareholder), must be presented.

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