The Commodity and Services Tax Act, 643

The Commodity and Services Tax Act, 643

An act to fund public programs and other necessary government expenditure as well as to disincentivise certain economic behaviours through a levy on the sale of goods and services.
Passed 26 July 2022 with 14 Aye, 4 Nay, 2 Abstain. Amended 16 April 2023 by the Taxation Revision Resolution

Article 1 - The Land Value Tax

1.1 - Creates an annual flat tax on the value of privately owned and managed land.

1.2 - Specifically excludes the valuation of any property or improvements to a parcel of land.

1.3 - Sets the annual Land Value Tax Rate to be 10%.

Article 2 - The Under-utilised Residential Property Tax

2.1 - Creates an annual levy on the value of residential property left vacant for more more than six months in a calendar year.

2.2 - Sets the annual Under-utilised Residential Property Tax to 25%.

Article 3 - The Point of Sales Tax

3.1 - Creates a flat tax on the sale of all goods and services to be collected by the seller at the point of sale.

3.2 - Sets the Point of Sale Tax Rate to 7% of the gross untaxed sale price.

Article 4 - The Petroleum Sales Levy

4.1 - Creates a flat tax on the sale of petroleum, gasoline, butane, diesel, and other oil based fuels.

4.2 - Appends this levy in addition to the Point of Sales Tax.

4.3 - Sets the Petroleum Levy to be 15% of the gross sale price.

Article 5 - The Tobacco Sales Levy

5.1 - Creates a flat tax on the sale of cigarettes, cigars, snuff, chew, loose tobacco, and all other tobacco products to be taken internally.

5.2 - Appends this levy in addition to the Point of Sales Tax.

5.3 - Sets the Tobacco Sales Levy to be 30% of the gross sale price.

Article 6 - The Alcohol Sales Levy

6.1 - Creates a flat tax on the sale of beer, wine, spirits, and all other ethanol-containing products intended to be taken internally.

6.2 - Appends this levy in addition to the Point of Sales Tax.

6.3 - Sets the Alcohol Sales Levy to be 30% of the gross sale price.

Article 7 - The Recreational Drugs Levy

7.1 - Creates a flat tax on the sale of all legal Schedule B and Schedule D recreational drugs.

7.2 - Appends this levy in addition to the Point of Sales Tax.

7.3 - Removes this levy for any substance acquired on the advice and prescription of a practicing and certified medical professional.

7.4 - Sets the Recreational Drugs Levy to be 45% of the gross sale price.

Article 8 - Property Tax

8.1 - Sets the Property Tax to 1%.

8.2 - A single family home is defined as: a free-standing residential building. Single-family homes are designed to be used as a single-dwelling unit, with one owner, no shared walls, and its own land. Town houses are also defined as a single-family home as long as these dwellings are separated by a ground-to-roof wall.

Article 9 - Luxury Goods Tax

9.1 - Sets the Luxury Goods Tax to 9% of the gross sale price. This is appended onto the existing Point of Sale Tax.

9.2 - A Luxury good is defined as: Haute couture/designer/custom fitted clothing, accessories such as jewelry and high-end watches, high-end automobiles (Sports cars, SUVs, EVs, Super Cars, Race Cars), private yachts, and wine costing more than 150 florins per 375mL bottle.

Article 8 Added by the Taxation Revision Resolution

Article 9 Added by the Taxation Revision Resolution