Chris Lethbridge parks his 2008 Dodge Ram pickup truck, which he purchased at a private sale last month, without insurance at his home in Salmon Arm, British Columbia, instead of driving it.
He knows he cannot file a claim with ICBC if the truck is damaged or stolen. Nevertheless, there is no financial protection there, no extra kilometers rolling on the odometer.
“It’s an $11,000 paperweight in my driveway,” Lethbridge told the CBC. Daybreak South“And I’m not the only one in the state dealing with this.”
On October 1st, a new local ordinance on the sale of private cars came into effect.
Instead of paying 12% State Sales Tax (PST) on the vehicle’s actual selling price at the time of purchase, the buyer must pay PST at the time of registration. This tax is based on the average wholesale price of the vehicle in Canada. Blackbook evaluation guide.
This has left Lethbridge and people like him upset and calling for action.
Lethbridge says he paid $2,100 for his Dodge Ram at a private sale. However, when he went to register the vehicle, he was told by his insurance agent that the Canadian Black Book was worth his $11,000 and that he would have to pay PST for that amount. was broken.
“I was a little stunned,” said Lethbridge.
Lethbridge said he obtained a temporary driving permit so he could drive the truck from nearby Kamloops, where it was purchased, back to Salmon Arm.
Now that the track is dusty, Lethbridge says he is trying to find a satisfactory solution to his situation.
“There has to be light at the end of the tunnel. It has to be there.”
Government Says Changes Bring BC In Line With Other States
The state government says it made the change to prevent buyers from underestimating the purchase price of vehicles in private transactions and paying PST at those low figures. The loophole could cost him nearly $30 million in annual revenue for PST, the company said.
A buyer wishing to contest the listing value may hire a qualified appraiser to assess the value of the vehicle and present the assessment to ICBC at registration.
The guidelines state that if both the assessed value and the price paid are lower than the average wholesale price of the Canadian Black Book Guide, the PST amount will be calculated based on the greater of the price paid and the assessed value of the vehicle. I’m here.
However, the appraisal fee is the responsibility of the purchaser.
In a statement emailed to the CBC, Treasurer Selina Robinson said the change would bring B.C. “in line with how most other states already impose a sales tax on these vehicles.” said it would be a thing.
Robinson also pointed out the evaluation options available to buyers.
Online Petition for Change
Graham Hugill is also upset by the new regulations.
A resident of BC Interior’s 150 Mile House said he bought a 2015 Ford F-30 truck for $35,000 at a private sale. He said he had all the paperwork when he went to register the vehicle and was told he had to pay PST based on the Canadian Black Book value of $47,240.
“Basically, it’s theft from me,” Hugill said.
As with Lethbridge, Fugil leaves the truck at home and unregistered.
In protest against the new regulations, Hugill has launched an online petition. As of Thursday afternoon, it had nearly 7,000 signatures.
“I’m a 60-year-old man, so I started petitioning, but now I’m sick of dying in taxes.”