Reclaim 4 years of tax charged on your ATV Insurance

After reading the most recent Registered Insurance Brokers of Ontario (RIBO) Bulletin, it was obvious that some ATV enthusiasts may be very pleased. My duty as a Blogging Insurance Broker is to inform and educate, so let me tell you about a little tidbit regarding ATV Insurance Premiums. Believe it or not, but the insurance coverage of all terrain vehicles has been reviewed by the Tax Advisory Services Branch, Retail Sales Tax Section (TASB-RST) of the Ministry of Revenue and they actually want to save you some money.

According to the RIBO Bulletin, the TASB-RST has concluded the following:

“ATV’s that are driven beyond your property lines and authorized under the Off-Road Vehicle Act, and are subject to being insured under the Compulsory Automobile Insurance Act – even if driven on dirt roads, trails etc. – in accordance of Section 316/03 of the Highway Traffic Act.”

Excuse me, WHAT???

It just means that the retail sales tax charged on premiums for this category (ATV’s driven off of your private property) is based on a declining rate.  All rates after March 31, 2004 would not be charged any Retail Sales tax.  Here’s the good news: if you have been charged tax on your ATV insurance under this category, you can recover that expense going back up to 4 years based on the system in place.  Policies will vary, so it is advisable to contact your broker regarding this change.

There isn’t necessarily bad news per se, but note that ATV’s that stay on your property do not need to be registered as above and can be insured under home policies.  As such the premium would still be subject to the 8% retail sales tax.

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