Photo: Prince George Citizen Graham Hugill of 150 Mile House is protesting the BC government’s new used vehicle tax policy, which collects PST based on book value rather than actual sales price. Finance Minister Selena Robinson says BC is following the lead of other provinces now that it has changed its tax policy on private used vehicle sales. The new rules, which came into effect on Oct. 1, dictate that the amount of provincial private sales tax will be based on the Canadian Black Book’s average wholesale value rather than the actual sales price. If, however, the actual sales price is greater than the book value, the province will collect its tax on whichever is higher. “The only change here is to bring us into line with how most other provinces already apply sales taxes to these vehicles,” Robinson said, in an email sent Tuesday to The Citizen. “Our government has taken significant steps to reduce costs for drivers, including fixing the old government’s mess at ICBC and reducing car insurance rates. We will continue to reduce costs for people.” The new policy was first announced in February as a way of discouraging fraud and as a means of cracking down on people who would record a lower purchase price on their transfer papers than they actually paid for that vehicle in order to save money on the tax they should have to payment. By closing that loophole, the government expects to generate $30 million in revenue that it says will be used to fund health care and education programs. Robinson declined an interview request. In the email, the government points out that the average wholesale value of a vehicle is lower than its estimated market value. “We expect that in most cases, there will be no change for people with very few vehicles selling below the average wholesale price,” the email states. “If someone pays less than the average wholesale value because of the condition of the vehicle, they will be able to get a vehicle appraisal to reduce the tax paid on the purchase.” In the case of a vehicle with high mileage or if it needs repair, the burden is on the buyer to have the vehicle inspected by a licensed appraiser to show that the vehicle is worth less than the book wholesale price. The cost of an inspection ranges between $150 and $350. read more Do you have an opinion? Send it to [email protected] Nov 14, 2022 – 17676 votes Would you support a return to mask use if COVID, flu and RSV cases increase in BC? Yes: 7424 No: 9702 Uncertain: 550 November 12, 2022 – 11608 votes Do you support the decriminalization of psychedelic mushrooms? Yes: 6783 No: 4043 Not sure: 782 November 10, 2022 – 13837 votes Have you cut back on eating out lately? Yes: 10182 No: 3423 Uncertain: 232 November 9, 2022 – 16336 votes Do you think we should change the name of British Columbia? Yes: 1409 No: 14483 Uncertain: 444 November 8, 2022 – 10357 votes Are you happy with how your city handled the recent snowfall? Yes: 2617 No: 6890 Uncertain: 850
