Environment Tax - Introduction

This section provides general information on Environment Tax including legislative authority, application of the tax and tax collection and remittance requirements.

What is Environment Tax?

Under the Environment Tax Act and Regulations, Environment Tax is charged on new tires purchased or consumed in Prince Edward Island. Environment Tax is also charged on tires attached to or included with a new or used motor vehicle purchased outside the Province and brought into Prince Edward Island.

Tire is defined as: 

  • a pneumatic tire for use with a motor vehicle, and 
  • a solid rubber tire sold with an automobile or truck for use as a spare tire, 

but does not include a retreaded pneumatic tire. 

Motor vehicle is defined as a passenger car, automobile, motorcycle, truck, bus, truck tractor, tractor trailer or similar mobile equipment designed and used for the transportation of passengers or goods including construction equipment and tractors, combines or other agricultural implements.

What is considered a “new” tire?

A tire is considered to be new until after its first purchase at a retail sale in the Province of Prince Edward Island. Tires previously sold at retail in Prince Edward Island are not subject to Environment Tax.

How is Environment Tax collected?

Environment Tax is collected by vendors. Vendors are businesses that sell tires to consumers. Vendors making retail sales of tires are considered to be agents of the Minister of Finance, and are required to charge, collect and remit the tax imposed under the Environment Tax Act.

Vendors can refer to the section titled Environment Tax Information for Vendors for details on vendor registration, collecting, reporting and remitting Environment Tax.

Are Motor Vehicle Dealers Environment Tax vendors?

A motor vehicle dealer who brings new or used motor vehicles into the Province is required to charge, collect and remit the tax on the tires included with the motor vehicle at the time of the motor vehicle’s first retail sale in the Province.

Who pays Environment Tax?

Environment Tax is paid by persons:

  • who purchase new tires, including new tires attached to or included with a new or used motor vehicle, within the Province; or
  • who register for the first time in the Province, a new or used motor vehicle purchased outside the Province.

Are there any Environment Tax exemptions?

Information on Environment Tax exemptions can be found in the section titled Environment Tax Exemptions.

Can a business or an individual request a refund of Environment Tax if the tax was collected and remitted by a vendor in error?

A business or individual who has paid Environment Tax in error can apply for a refund using the Request for Refund of Environment Tax form.

How are consumers and vendors informed of legislative interpretations or changes to administrative requirements under the Environment Tax Act?

A formal Environment Tax Notice – General is produced and posted on our website each time there are legislative interpretations or changes to administrative requirements under the Environment Tax Act.

 

Disclaimer: This page is prepared for information purposes only, and should not be considered a substitute for the applicable statutes. Should there be any conflict between the contents of this page and the statutes, the statutes shall prevail.
Published date: 
July 7, 2017
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