A Cranbrook woman is speaking out about tax changes to private vehicle sales after she was slapped with a higher tax fee than anticipated when she recently bought an older used truck.
Rene Kosarczuk is taking the province to task after purchasing a 2002 Chevrolet Silverado 1500 for $1,000, yet having to pay the tax hit on the vehicles’ estimated valuation of $3,500, which is determined by the Canadian Black Book valuation guide.
Kosarczuk purchased the truck at a lower price, knowing it would need some front-end work, which came in at just over $1,200.
“I feel that there’s always talk about people becoming homeless and with the pandemic, people were laid off work for a while and I feel this is just a spiral effect that, because of them adding taxes and the cost of living going up, this is just going to spiral out of control,” Kosarczuk said.
She said she was not shown the Canadian Black Book valuation while registering the truck, nor was given a printout copy, as requested.
The private vehicle sales tax changes were made last September, with a new directive on Provincial Sales Tax (PST) issued as part of last year’s budget. The province noted the changes align with the majority of other provinces and is intended address tax avoidance arising from the under-reporting of the price of motor vehicles from private sales, according to the Budget 2022 document.
Kosarczuk isn’t the first person to speak out about the issue.
READ: ‘It’s ludicrous’: Salmon Arm man resists new rules for private vehicle sales in B.C.
Last November, a Salmon Arm man experienced the same when purchasing a used 2008 Dodge for $2,100, yet paid a tax fee on the valuation of $11,000.
On the provincial stage, the B.C. Liberals have been hammering the NDP government over the changes, with the recent introduction last week of a bill from Peter Milobar, the party’s shadow finance critic.
Under Milobar’s proposed legislation, there would be no provincial sales tax on the sale of used vehicles costing less than $20,000 and have been driven at least 6,000 kilometres.
“Last spring, in the middle of an affordability crisis, the NDP announced they would be increasing the tax on used vehicles, taxing people on what the NDP deems the vehicle’s value to be, rather than the sale price,” said Milobar, in a news release issued on Feb. 8.
“Instead of continuing to make life less affordable, Premier Eby and his government should be looking for ways to provide people with relief. That’s why the BC Liberal Caucus is re-introducing this bill to provide a PST exemption for all used car sales under $20,000.”
Kosarczuk has launched a petition similar to others across B.C. to raise awareness about the changes.
With files from Lachlan Labere/Salmon Arm Observer