Changes are coming to AMVIC’s vehicle sales levy, business licensing fee, as well as the rules around the Compensation Fund.
The vehicle sales levy will increase from $6.25 to $10 and the single sales business licence fee will increase from $175 to $250. Other licence class fees are not affected. A number of improvements are coming to the Compensation Fund.
The fee increases and changes to the Compensation Fund will take effect on April 1, 2024.
AMVIC’s revenue comes from the vehicle sales levy, licence fees, registration fees, and course fees. The authority to collect money is through Section 136(8) of the Consumer Protection Act. The vehicle sales levy has not increased in 13 years and the single sales business licence fee has not increased in 19 years. The increased funding will help expand AMVIC’s capacity in numerous areas, including:
- education and communication initiatives directed at consumers and industry;
- resources to educate and inspect 7,800 automotive businesses; and
- ability to process and investigate more than 2,700 consumer complaints per year.
The levy increase is also a reminder that all-in advertised pricing is the law. The vehicle sales levy must be included in the advertised price of a vehicle.
AMVIC maintains and administers a Compensation Fund, which compensates consumers in the event they suffer a financial loss as a result of dealing with an AMVIC-licensed business that is no longer operating. Since 2012, 175 consumers have received more than $1.6 million in compensation.
Compensation Fund improvements include:
- increasing the maximum payout per claim from $25,000 to $30,000;
- removing the $300,000 cap which allows more timely responses to claims;
- creating a dedicated revenue stream; and
- boosting the fund size to $5 million from $4 million.
Over the coming months, AMVIC will be communicating regularly with industry and consumers through bulletins, the Impact newsletter, social media, and on amvic.org to ensure that industry members and consumers are made aware and are reminded of the changes.