Beginning December 1, bicycles and bike helmets will be exempted from the 8% provincial retail sales tax in Ontario, Canada. "We want to encourage more Ontarians - young and young-at-heart - to get outdoors, spend time riding bikes as a family and with friends, or to try riding to work if possible, leaving the car at home," said Ontario Premier McGuinty.
The full details are at the Ontario Ministry of Revenue website. Bicycles purchased for under $1000 are exempt, as well as bike safety equipment such as helmets, reflectors, lights, bells, horns, and mirrors. Bike rental, bike parts, non-safety bike accessories and labor for repairs and assembly remain taxable.
Mentioned at Bicycle Retailer and Industry News (aka the BR&IN), Canadian Cyclist, Pedal Magazine.