Tax on used vehicles

[brounal]

This tax is absolutely a money grab and should be eliminated. Its bad enough we pay 7% PST in BC.
And still hate the federal government for putting in the GST.

[Randall T]

Once a tax is implemented, it's doubtful it will ever be removed regardless of the government in power. We're Canadians, we're highly taxed, it's the way it is. I plan on retiring at the poverty level so I can pay the least amount of tax and finally get some perks that others have to pay for :)

[zzontar]

It's ridiculous to pay taxes on it more than once. You could be the 10th person to pay taxes on it, then when it dies and goes to a used parts place, they pay the taxes as well, then to the auto wrecker/crusher who also has to pay taxes on it. Whatever politician who wants to stop this gouging gets my vote!

[wanderingman]

Once a tax is implemented, it's doubtful it will ever be removed regardless of the government in power. We're Canadians, we're highly taxed, it's the way it is. I plan on retiring at the poverty level so I can pay the least amount of tax and finally get some perks that others have to pay for :)

really? well I would rather retire with a good stock portfolio that's invested in Dividend paying public companies because you can make $48000 PY tax free on this income

[wanderingman]

Lots of people finance used vehicles. They also pay tax on the often significant difference between the trade in and the new-to-them vehicle.

BUT were not talking bank interest only TAX payable on this forum.

[kgcayenne]

I'm trying to draw a contrast between people's strange bias. People think nothing of forking over thousands of dollars to a bank or sub-prime lender, but are resentful of paying taxes (any taxes including cars) that are used for the running of their very community, province, country, etc.

Really, am I the only person who understands this dichotomy.

Meanwhile, my opinion is that cars bought privately shouldn't have 12% tax, yet if bought from a dealership, then taxes ought to be paid. When the dealer collects the PST, the government gives them a commission on it, whereas private sellers don't get that commission when PST is collected on the vehicle they just sold.

[Steve-O]

I feel the OP's pain. I was gifted a vehicle from my parents. There are provisions to not pay taxes on gifted vehicles, however, because my folks are in Alberta and there is no sales tax in Alberta, I had to pay 12% on the value of the vehicle. My argument that all applicable Alberta sales taxes were paid and therefore met the provisions laid out by the BC gov't fell on deaf ears. They didn't give me and my family the vehicle because we are rolling in dough, so it was a bitter pill to swallow and I tell ya, it took considerable constraint to maintain my temper with the insurance agent, she was just the messenger after all.

But ya this system is messed up and encourages fraud. Selling my old truck, I was asked many times to "trade".

[Randall T]

really? well I would rather retire with a good stock portfolio that's invested in Dividend paying public companies because you can make $48000 PY tax free on this income

Yeah, but I don't get paid for the work I do and I'm too lazy to start a new paying career. Good thing I'm frugal, have a comfortable life and becoming more of a minimalist every day.

[zzontar]

I'm trying to draw a contrast between people's strange bias. People think nothing of forking over thousands of dollars to a bank or sub-prime lender, but are resentful of paying taxes (any taxes including cars) that are used for the running of their very community, province, country, etc.

Really, am I the only person who understands this dichotomy.

It takes more than vehicles to run a community. Do you think taxes should have to be paid on other used items as well?

[kgcayenne]

It takes more than vehicles to run a community.

Of course it takes more than vehicles, but once you begin to whittle away at the contributions to the 'big pot', where does it stop? It's like people crying broke while visiting their favourite coffee house 7-14 times a week at $5 a visit.

Do you think taxes should have to be paid on other used items as well?

When bought privately, no, when bought through a for-profit business, yes.

[Gixxer]

Yes those pesky annoying taxes. I challenge anyone to move to a country for a full year where they dont have to pay taxes I guarantee you cant wait to move back and pay those taxes.

[zzontar]

Yes those pesky annoying taxes. I challenge anyone to move to a country for a full year where they dont have to pay taxes I guarantee you cant wait to move back and pay those taxes.

The problem is being overtaxed. I also loved growing up in a country where almost nothing had extra taxes, now the government can actually get more money from taxes from a car that's been sold enough times than the value of the car. If they tax used cars that have already had the taxes paid on them, maybe they'll start taxing all resold used items, yippee!

[Xia33]

Yes those pesky annoying taxes. I challenge anyone to move to a country for a full year where they dont have to pay taxes I guarantee you cant wait to move back and pay those taxes.

been there, done it, loved it....and can't wait to do it again. Enjoy paying your taxes.

[John500]

Maybe the transfer tax is not such a bad idea comparing this how much money the Lieberals take out of ICBC to go to general coffers. Now THATS a tax we have to get rid of first. The transfer tax of 12% on vehicles is simply a pay back scheme to the Car dealers in BC that never was changed back when the HST was turned back to PST and GST.

[Glacier]

Meanwhile, my opinion is that cars bought privately shouldn't have 12% tax, yet if bought from a dealership, then taxes ought to be paid. When the dealer collects the PST, the government gives them a commission on it, whereas private sellers don't get that commission when PST is collected on the vehicle they just sold.

This tax on private sales would be somewhat okay if people weren't so dishonest these days. I recently bought a "new" vehicle privately, and the seller said they'd be willing to put down a lower price to save me a few hundred bucks on the tax, but I just couldn't say "yes" despite the financial carrot. Meanwhile, a guy I know who buys and sells vehicles regularly on Castanet saves 1000s of dollars per year by writing down a lower sale price.