Tax change for used vehicles sales unfair
The provincial government is introducing a tax change regarding the purchase of used vehicles by private sale effective Oct. 1, 2022.
The change is that the seven per cent provincial sales tax will be based on the market value of the vehicle. As an example, if a vehicle has a market value of $17,000 and sells for $15,000, the provincial sales tax on that purchase would be $1,050, and if the province deems that the market value of that purchase is $17,000 the provincial sales tax would be $1,190.
The government states the reason for this tax change is to curb fraud.
Market value is for the best shape a vehicle is in. Some of the vehicles being purchased are not in the best shape.
The government states that if you are not satisfied in paying the additional tax, you would have to get an appraisal done on the vehicle that is being purchased, as there is no qualified personnel working in insurance renewal offices that are qualified appraisers. An appraisal will cost around $250.
In summary, this new tax change is a win-win situation for the government. Just pay the additional tax, because having to pay extra for a vehicle appraisal is defeating the purpose of trying to save money on the additional tax.