New tax rules on private, used car sales

[fliptuner]

It's already bullshit that we pay tax on privately sold cars. Now they want to dictate the tax, based on the mean value of said car. There's a lot more to consider than make/model/year.

https://www.kamloopsthisweek.com/loc...obacco-5097884

The tax change for used vehicle sales was included in Tuesday’s (Feb. 22) provincial budget, and takes effect on Oct. 1. At that time, tax will apply to either the reported purchase price or the average wholesale price of that type and year of vehicle, whichever is greater.

“This approach would align B.C.’s treatment of private vehicle sales with the majority of other provinces and is intended to address tax avoidance arising from the underreporting of the price of motor vehicles from private sales,” states the detailed budget released Feb. 22. “The measure will not apply for motor vehicles involved in a trade-in.”

[320icar]

Although I understand where they are coming from, it’s also bullshit. When I got my STi I paid the tax on the amount I bought it for. It was way under market value, but it’s a rough example that’s one motor explosion away from the scrap yard. How dare they charge me tax on what “they think” I deserve to pay, regardless of what I actually paid.

When will it end?

[fliptuner]

Guess who's determining the value you're taxed on - ICBC.

So does that mean all the clapped out, winter beaters are going to get paid out the average value of the same cars? I mean that's the value you taxed it on, right?

[mr00jimbo]

So if I sell a used lawn mower, fishing rod, fridge, television, etc. it's a cash and handshake deal. So what's the point on tax on used cars between two private parties?

Makes 0 sense to me. But the gov makes bank on it so they want it to continue, just like the property transfer tax.

[donk.]

They finally caught on to us

Yes, you, you, and you.

[BaoTurbo]

While we on the topic of new tax rules, I have some good news

https://driving.ca/auto-news/local-c...-vehicle-sales

British Columbia was already one of the most incentivized places in Canada to purchase electric vehicles, having set the goal of having EVs make up 90 per cent of new car sales by 2030. And now, thanks to Provincial Sales Tax (PST) cuts announced in the province’s 2022 budget, it’s becoming even more EV-friendly.

Beginning on Feb 23, 2022, residents who purchase a pre-owned battery-electric vehicle in the western province will no longer have to pony up the extra cash for PST, previously set at 12 per cent on vehicles sold up to $124,999, 15 per cent on those between $125,000 and $149,999, and 20 per cent on those over $150,000.

Zero-emission vehicles will be completely exempt from PST when purchased as “used,” which the government defines as having been driven over 6,000 km.

But if you’re on the hunt for that lightly used Model 3, don’t wait too long because the exemption does come with a best-before date. The exemption will expire in five years, on Feb 22, 2027.

[waddy41]

That's bs, so where can I find out what my 99 teggy is "worth"?

Better to just sell it in the states then

[donk.]

Why does selling a 5000$ integra matter? it's only 600$ in tax the buyer needs to think about

Maybe if it's a 50,000$ car your trying to buy and label it as "10,000 needs a motor". 5000$ in tax will make a difference

In regards to buying a car and not knowing the "wholesale price" you can call autoplan, and get them to give you a tax estimate

Although I do wonder, what happens when you buy an expensive car that needs 50k in work. How does that get taxed?

[twitchyzero]

it's bs but how often is the average person privately buying a used car?

this is something you have direct control over, vote with your wallet

if you switch up every 6-12months, pay to play shouldn't be a new concept

heck maybe this will make people think twice about flipping

[JDMDreams]

Can we say we traded then?

[68style]

I don't think anyone should be in favour of a tax which only taxes the have-nots so-to-speak... of the car buying public, the ones who are buying used are often not doing it by choice. Also, as mentioned by numerous others, there's zero reason a government should collect tax on the sale of used items. None. You sell your baseball card or armchair or whatever else to someone on CL that person doesn't pay tax... why for cars? Because of the Automobile Dealers Association. They've had their hands in the government's pocket since the beginning of time wielding their power to keep the 12% tax in place after HST got gonged and allowing rules that let them screw people on deposits and trade-ins for as long as they've even existed.

I mean, honestly, why should a family trying to buy a 10 year old Honda Odyssey with 150,000kms on it for $15,000 pay $1800 in tax on it? Someone else already paid $5,000+ in taxes on it when it was new, the government got its cut at that point in time and that should be it. And that's assuming said family is only the second owner... not the 3rrd or 4th. It's fucking ridiculous.

Originally Posted by donk.

In regards to buying a car and not knowing the "wholesale price" you can call autoplan, and get them to give you a tax estimate

I used to do this to check what I should put down sometimes for purchased amounts... insurance places now say they can't do it anymore/won't do it... been out of luck for a couple years... the value doesn't show up until they are doing the transfer and input the car's information.

heck maybe this will make people think twice about flipping

Just gonna see lots of people with transfer papers signed by previous owner...

[nismodrifter]

Fuck this. Total cash grab charging PST on used car sale anyway. I will contact my MLA and give them some work to do regarding this nonsense.

[underscore]

Weren't they already doing this? iirc a few years back someone on here that bought a car for under market value purely because some rich guy just wanted to get rid of it got hit with extra taxes after the fact.

[68style]

They always check the value vs whatever book it is (I forget if its blue, gold or black) and then they check off that box that says whether it's under valued or not and if it is you have to explain why.

They also have some people (not many) working in a department that investigates flagged sales as well.

This new system is proposing to not even ask you how much you paid, just charging a tax based on the type of vehicle it is and fuck you what condition it's in basically.

[dark0821]

exactly lolol

buying rolling shell...oh yup... defn same tax as the one that is driving down the street...

buuuut

Buying of BAT... oh yup.... defn same tax as the one that is driving down the street....

hahahaha.... i guess "straight trade" it is... unless ICBC will ding both drivers ... be like...yea you guys paid "$0" for your $35K vehicle.... guess what? Taxes for $35K on both of yall....

[Great68]

Originally Posted by mr00jimbo

So if I sell a used lawn mower, fishing rod, fridge, television, etc. it's a cash and handshake deal.

You can bet that if the government had a system which could track these transactions, they would enforce PST on those as well.

I'm especially bitter about their definition of "related individual".

My aunt (mom's sister) and uncle here on the island, who are almost like a second set of parents my whole life are not "related individuals"?
Like fuck you government, that's almost insulting!

[GLOW]

will they use the same assessment for icbc claims?

like if my car gets written off i'll now get the same "fair market value" they use to charge tax vs lowballed by icbc?

[68style]

^ They have nothing to do with each other currently. I would expect that to continue.

You could buy a car today for $5.00 and write it off and get market value for it... purchase price for a used vehicle has never had any consequence on insurance payouts.

ICBC contracts out to a third party database that tracks values for vehicles for sale across the country in determining values for vehicles in write-off situations.

[donk.]

Originally Posted by GLOW

will they use the same assessment for icbc claims?

like if my car gets written off i'll now get the same "fair market value" they use to charge tax vs lowballed by icbc?

[Euro7r]

This is stupid cash grab, which is bullshit provincial government. If I'm selling a car for $2,000 (needs some maintenance and new tires), and average market price is $3,500, makes absolutely no sense 7% is tacked on the $3,500 as the car isn't "truly worth $3,500" if taking into consideration the conditions.

[68style]

^ Even worse, in car world the PST is 12% sir (under the luxury tax bracket anyway)

[Great68]

It doesn't need to even be a car. I got dinged the 12% PST when I bought my used travel trailer. It doesn't have an engine and can't propel itself.

How the fuck do you "market value" RV's when there are SO many more issues that could bring down the value compared to a car.

[teggy604]

Its to make up for our compass card system haha.
All those buses are one zone now. In reality our compass card system is shit. Makes no difference compared to the old system. I still see ppl bypass the gates.

[68style]

??? What are you even talking about lol

[nessus]

ICBC is the textbook definition of a monopoly. They really need to break it up man.