Scudrunners

When renting a plane ,why do flying clubs charge HST on the value of the fuel used instead of charging just the cost ? >:(
If a 172 goes for $200 hr. and about $50 is for fuel why is the sales tax on the $200  instead of $150 and then add what you would pay at the pump.
When I rent a car whether it comes with a full tank or I prepaid  the gas ,there is never sales tax added
It may not seem like much but renting 1 hr a week if HST wasn't added to the fuel portion, at the he end of the year you save the equivalent  of 2 hrs rental
I think flying clubs should benefit the members not the government.

What do they charge you a flat $200 per hour? or do they charge $150 plus gas you used?

Im no expert on HST as I live in Alberta but I don't think you're allowed to tax a tax????

anyone know?

HST  on $50 is $ 7.10 or a biit more than 3% of the rental rate . The club gets the fuel at the pump that already has been  taxed on taxes as 13% HST  is automatically added on top of all the other taxes , then the club charges HST for a second time ,but hey,
I feel warm and fuzzy , I live in  Progresive's Paradise and the more taxes we pay and more expensive flying becomes the happier I am

SSU

I apologize for believing that life was fair, until you told me it wasn't so , or  my post suggesting  flying should be tax exempted  and free for me
I also apologize for my confused sociopolitical views , for been the cause why '' there's less and less options for aircraft to rent in this country and its this kind of constant bitching about it''
and for not wanting to be overtaxed
I enjoyed your very insightful comments
Best Regards
vN

So lets look at this in a clear manner.


The tax was already paid on the fuel.


The renter charges the tax again, is that not dishonest at best?

Chuck Ellsworth wrote: So lets look at this in a clear manner.


The tax was already paid on the fuel.


The renter charges the tax again, is that not dishonest at best?

Its no different than a manufactured product that contains parts that were purchased from a supplier that charged HST. The final seller gets a credit for the HST they paid on the parts and theoretically takes the HST paid on the parts out of the price paid by the consumer.


Whether they do this or not is really irrelevant. They set their prices to make the return they want and the consumer gets to decide whether they want to pay that price, or not. 

Every liter of auto gasoline has the excise tax built into the rack price.  The retailer buys that gas, marks it up, and applies the GST / PST / HST as applicable and puts that price on the pump.  You pay sales tax on excise tax on every liter of gas you buy for you car / truck / lawn mower / airplane.


It was either Mr. Cretien, or Mr. Mulroney (or maybe one of their finance ministers) who stood up in the house of commons and declared that despite being illegal to tax a tax, it was too hard to break the excise tax component out of the GST / PST / HST charged.  Doesn't matter who said it, I've been disappointed by more than a few who've sat in the hallowed chamber.


So what's the difference here?


Gerry