Canada: Moped Dealers face higher taxes?

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Canada: Moped Dealers face higher taxes?

Postby Micronaut » Wed Apr 12, 2006 8:22 pm

New fees reflect Lower Mainland problems ... c7437.html

BURNABY, BC, March 30 /CNW/ - Annual licence fees paid by all motor
dealers in British Columbia, commencing May 1, 2006, will begin to reflect the
disproportionate amount of service issues and enforcement problems that occur
in the Lower Mainland. Every dealer operating from Hope to Whistler, including
the Greater Vancouver area, will pay a $500 surcharge over fees paid by
dealers elsewhere in the province.
"The issues we deal with in the Lower Mainland are not merely a
reflection of population size and the local economy," said Ken Smith, the MDC
President and Registrar. "The blunt truth is that the majority of unscrupulous
performers are right here under our nose. The MDC did not see why dealers in
less problematic areas should carry that burden."
The Motor Dealer Council is an independent regulatory authority
established pursuant to the laws of British Columbia with responsibility for
administering the Motor Dealer Act and related regulations, as well as other
statutes as they involve motor vehicle sales to consumers. The Board of
Directors consists of industry (new and used cars, light trucks, motorcycles,
recreation vehicles) and prominent "public-at-large" representatives,
individuals with distinguished backgrounds in public service and business.
The independent regulatory agency is just completing its second year of
operation, successfully implementing programs and creating substantial demand
for more. For the 2006/07 fiscal year the MDC will have a budget of
$3.8 million, up from $2.4 million. About 60 percent of the increase relates
to enforcement and licensing issues. Among the new programs to benefit both
industry and the public will be a Dispute Resolution Service, a mediation
process that can more rapidly and inexpensively resolve disagreements.
The Lower Mainland surcharge is just one of the "equity" issues addressed
in the new fee structure. The MDC established compulsory salesperson training
and licensing in 2004. In the past year, revenues from this source had grown
to represent almost half the entire MDC budget, far too heavy a burden on
industry workers. New car dealers, who also sell two thirds of used cars sold
through B.C. dealerships, paid only 14 per cent of the entire budget in
2005- 2006. This will be adjusted for the new year. New car dealers will pay
33 per cent; used vehicle, motorcycle and moped dealers, 26 per cent; and,
salespeople 28 per cent.
The new fee structure will be communicated to the industry today. Details
can be found at
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