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10 Things to Know About NL Auto Insurance Tax Elimination.

Posted on July 4, 2019
Auto Insurance Tax Elimination

The Provincial Government recently eliminated the remaining 13 per cent Retail Sales Tax (RST) on automobile insurance. Here are 10 things you need to know about the recent decision by the Government of NL to eliminate RST on automobile insurance in this province:

  1. The elimination of the tax pertains to auto insurance including personal vehicles such as cars, motorcycles, ATVs and other recreation vehicles
  2. The elimination of the tax also applies to commercial vehicles, such as taxis, school buses, trucks (fire, police) and tractor trailers
  3. The Government of NL have determined that the taxes charged on personal property and other commercial policies (excluding commercial auto) will continue
  4. Any customer that renewed their auto policy on or after April 15, 2019 up to the date that the change became law will receive a rebate for the taxes paid
  5. The RST refund may be processed as a direct payment to the client, a reduction in monthly installments, or a credit against an accounts receivable
  6. The insurance company (Aviva, Intact, Travelers, etc.) that collected the tax is responsible to ensure customers receive the appropriate RST refund
  7. The insurance companies are in the process of calculating the amount of rebates for each customer and have until the end of September 2019 to process those rebates
  8. For policies in force before April 15, 2019, the NL Government have determined that there will be no refund of the tax
  9. The Government of NL have determined that refunds of tax will NOT be provided to taxpayers who cancel insurance policies that were acquired before April 15, 2019
  10. Munn insurance is now providing personal auto and commercial auto policies with no taxes calculated on the premiums – effective immediately all our new auto policies are tax free

If you would like more information on the elimination of tax on auto insurance, or if you have any questions on your home or auto insurance, please contact Munn Insurance at 855-726-8627.

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