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HST on private car sales "hidden" in budget

http://www.ctvbc.ctv.ca/servlet/an/l...ritishColumbia

Quote:

The B.C. government is coming under fire for a tax hike critics say was hidden in last week's budget.

Quietly buried in last week's budget was an announcement to raise the PST on the private sales of vehicles, boats and aircraft. The move, which takes effect the same day as the HST on July 1, will see the tax raised from its current seven per cent level to 12 per cent. The move will net Victoria millions of dollars in tax revenue from British Columbians.

But many people didn't hear about it. Instead of calling a spade a spade in the budget, the government only said it would:

"Continue [the] provincial tax on private sales of vehicles, boats and aircraft, but at 12 per cent."

Bruce Cran of the Consumer Association of Canada says the increase is a clear example of lack of government disclosure.

"There was no transparency here."

But Minister of Finance Colin Hansen insists the raise was in plain view.

"Anybody that read the budget speech or listened to the budget speech would know I explicitly referenced this change," he told CTV News during question period at the B.C. legislature.

Clear or not, Hansen says the hike is coming, meaning British Columbians will soon have to pay more if they're buying a used vehicle.

Tsawwassen resident Peter Jeffs is selling his 2006 Mazda. He's hoping to make the sale before the tax takes effect, or risk making less from the sale.

"I'd be picking up the tab for some of that," he said.

Under the current tax rate, buying Jeffs' Mazda for $14,000 would mean $980 in PST. After July 1, the buyer would have to shell out an extra $700.

That number gets much bigger as the price tag gets higher. A $40,000 BMW would cost an extra $2,000. And someone buying a $200,000 cabin cruiser boat will need to shell out an additional $10,000.

Cran says the tax hike will fall directly onto the shoulders of consumers.

"In the end in think you have to look at this as a tax grab. It's a blatant tax grab."

Looks like anyone else selling a car in the future is fucked.

Gotta take more tax money to pay off those debts from olympics...
Btw which party group is in power atm or more clear.. which one was in charge of handing out the money for the olympcis and shit? Anyone?

motherfuckers. Should've knew it.

hmmm i don't know if this makes sense but i don't think stuff that gets sold privately and depreciates should get taxed. the government is going to see an increase in gift letters from now on. haha

That's too bad. Initially they had indicated they would keep it to PST only but I guess they thought they could hide it. How do they think they could hide something that is so commonly used?

Idiocy.

Kev

This is news to me. I was under the impression HST was going to affect everything anyways.
Posted via RS Mobile

welll we had fun during the olympics, now we gotta pay the price.

any idea how many years it will take to generate the $8 billion with the HST?

I bet you the HST will stay after we finished making back the $8 billion.

They took off the luxury tax on new cars, but introduce a +5% on used cars. Sneaky bastards.

i always thought hst will be applied to used vehicles anyways. i dont see any surprising news here.
Posted via RS Mobile

FUUUU

I just listed my car for sale too!

Quote:

Originally Posted by TypeRNammer (Post 6855483)

FUUUU

I just listed my car for sale too!

Better hope it sells before the HST kicks in...

As much as I dislike the HST, we gotta pay for the Olympics somehow.

What about importing cars from the USA? Would one need to pay 12% HST and another 12% PST?!

Tax shouldn't be applicable to USED cars at all.

Think about it, the tax was paid on the car when it was purchased new. To have the government charge tax on its sale again is fucking double dipping.

I'm glad I bought my new cars before the HST came into effect.

youre also taxed on your income which you used to buy a car .... all together people .... ''tripple dipping''

in layman's term this is called a screw you all tax, i'm going home...

now there's gonna be more tax evasions seeing cars are sold to "relatives or friends"

Quote:

Originally Posted by death_blossom (Post 6855504)

What about importing cars from the USA? Would one need to pay 12% HST and another 12% PST?!

No lol, currently you pay 5% GST and 7% PST, soon you will just pay 12% HST. No change in the amount you pay for bringing a car in from the US or buying from a dealer.

Quote:

Originally Posted by CorneringArtist (Post 6855490)

Better hope it sells before the HST kicks in...

As much as I dislike the HST, we gotta pay for the Olympics somehow.

The Provincial Government has always got its piece of the pie on taxing used car sales. It's the Federal Govt. that will benefit from this and other areas where they'll now be collecting taxes where they weren't before. It's the reason they bribed the Provincial Govt. with a one time payment to bring this tax in.

Quote:

Originally Posted by r6_4life (Post 6855411)

the government is going to see an increase in gift letters from now on. haha

Or an increase of cars being "sold" at a far lower price than listed, according to the transfer paperwork.

...not that I've ever done either one... :angel:

IMO items should only be taxed when there is a profit to be made for the seller. But then how will the gov. make they're money. In the end I guess the taxes will benefit us all. Unless the politicians feel that their wages aren't enough for a normal standard of living.

yes, tax dollars are abused. anyone know where i can see financial reports from the government? Where the money is spent and how much the polititian gets. It's funny how we pay them to spend our money.

If only we had the whole country 'group buy' the things we need like roads, education, and health.

Quote:

Originally Posted by Lomac (Post 6855844)

Or an increase of cars being "sold" at a far lower price than listed, according to the transfer paperwork.

...not that I've ever done either one... :angel:

It's probably safer to use the gift form than to underlist the price.

It's a lot harder for ICBC to prove that you're not the seller's "Friend" (and more time consuming for them too) than to prove you didn't pay taxes according to market value.

I usually underlist, but still at a reasonable price. Suspect this will redefine "reasonable".

Quote:

Originally Posted by Great68 (Post 6856292)

This is true. I've purchased a few cars that had a claimed sale price anywhere between 10 and 50% of actual market value, though they weren't attempts at scamming. It was usually because the car I bought had a blown engine or transmission, or I only purchased it for parts. The first MX6 I bought (that eventualy burnt down) was purchased for only $300, and that was only for the previous owner to payback the dealership for the diagnostic fee they charged him after he oil-starved his engine. In instances like that, an autobroker might ask for proof as to why the purchase price was cheap (as they did to me that time), but usually they don't bother. However, pull it off too often and you very well might get investigated.