Castlegar man paid 43% PST on his used truck
British Columbians who’ve purchased a used vehicle in the past month may have gotten some sticker shock at the insurance broker.
Geoff Tellier, who lives near Castlegar, purchased a 2005 GMC Sierra pickup truck for $3,000. It was a good deal from a dying friend who was getting rid of his stuff.
But as far as ICBC was concerned, the Sierra was worth $10,760. A 12% PST rate means he was expected to pay another $1,300 to cover the tax on the book value of the truck. If you're doing the math, that's a 43% tax on what he paid for the truck.
“I had to put the money out if I wanted to insure my vehicle,” Tellier said.
As of Oct. 1, 2022, that’s how PST is applied to used cars in British Columbia.
“Under the new rules, the average wholesale value of a motor vehicle, for the purpose of calculating PST due, is determined using the Canadian Black Book valuation guide,” according to a notice from the provincial government.
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Tellier, who describes himself as “not a computer kind of person,” was told by an insurance agent that he could find a form online to fill out if he wanted to get an appraisal and dispute the value of his truck.
He took his truck to Kalawsky Chevrolet Buick GMC and after about 20 minutes his truck was appraised at a value of $3,600. He went back to the ICBC broker, but they were only able to help him by giving him a phone number to call.
On the phone with ICBC, Tellier said he was told to send in the appraisal form with a letter describing his situation.
“I sent them a hand-written letter. I told them ‘I bought it for this much, you charged me this much PST.’”
Tellier said he is eligible for a refund of $930, but he doesn't know how long it will take to arrive in the mail.
He said he’s always lived paycheque-to-paycheque, but now that is kids are grown, he has enough financial breathing room to weather the situation.
“Years ago though, I wouldn’t have had an extra $1,000 to play with, let alone wait to six months to get it back.”
Jumping through hoops for ICBC didn’t cost Tellier anything, but he suspects the hassle will deter many others from pursuing money they’re entitled to – especially when it’s for a less substantial amount.
“It’s a big inconvenience that shouldn’t be,” he said. “Somebody should have done a little more bookwork on the idea they had before they put it forward. It only goes after us working people who are just trying to get by.”
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A spokesperson for B.C.’s Ministry of Finance said in an email that the change won’t impact most people.
“This change also brings B.C. in line with what other provinces are already doing.”
The province is making life more affordable for drivers in other ways, like the elimination of tolls on two bridges in the Lower Mainland, the email reads.
The B.C. Liberal Party doesn't agree with the change.
“Effectively, the NDP are punishing people for finding a good deal at a time when millions of British Columbians are struggling to make ends meet,” B.C. Liberal Finance Critic Peter Milobar said in a press release.
The opposition party has introduced a bill which require no PST on any used vehicle sale under $20,000.
“If the B.C. NDP is serious about making life more affordable, they will support this bill and help provide relief for B.C. families,” Milobar said.
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