Retail Sales Tax Exemption for Bicycles and Related Safety Equipment

RST Information Notice, November 2007

This Notice explains the announced point-of-sale Retail Sales Tax (RST) exemption for bicycles and related safety equipment which will be effective from December 1, 2007 to November 30, 2008. For the purpose of this exemption, bicycles include tricycles and unicycles.

Context

This exemption is intended to encourage Ontarians to stay healthy and be active in their daily lives.

Bicycles

A point-of-sale exemption from RST is being introduced for bicycles purchased on or after December 1, 2007 and on or before November 30, 2008. The exemption will be available on the purchase of new or used bicycles that have a purchase price of $1,000 or less.

Safety Equipment

Safety equipment related to bicycles will also be exempt from RST during the period from December 1, 2007 to November 30, 2008. Exempt items include the following:

bicycle helmets
reflectors for bicycles
bicycle lights (including generators, battery operated lights)
bells and horns for bicycles
mirrors for bicycles.

Excluded Items

The lease or rental of bicycles remains taxable. Labour for bicycle repairs and bicycle assembly fees will continue to be subject to RST. The following items also remain taxable:

bicycle parts
bicycle accessories such as carriers (baskets, tools), pumps, hoses, drinking bottles, and kickstands
oil and grease
tube repair kits.

For More Information

For more information, please contact the nearest Ontario Ministry of Revenue Tax Office listed under Taxes - Provincial (Retail) Sales Tax in the blue pages of your telephone directory, visit our website at www.ontario.ca/revenue or contact the Ministry of Information Centre at 1 800 263-7965.

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