This Saskatoon teen got a great deal on a used truck. Then SGI hit him with the PST bill.
A Saskatoon family is voicing concerns after paying twice as much PST as expected on a recently purchased truck.
Like many teenagers, 15-year-old Otto Eggerman got a job and saved up for his first vehicle. He recently bought a 2016 Chevrolet Silverado.
“When I first got it, I was pretty happy,” he said.
He said he paid around $12,300 for the truck, but when the time came to register it, SGI valued it at about $24,500.
Based on the six per cent PST, the Eggerman family would have to about $1,470, instead of the $738 they were expecting to pay in taxes.
Provincial sales tax on used car sales was implemented in 2018 and is charged upon registration for private sales, according to SGI’s website.
Otto’s father Chad said they were prepared to pay PST on the purchase price, not on the estimated value.
“We knew the PST was coming, but PST is supposed to be applied to the actual value of the product, and so the actual value of the transaction was for $12,300,” he said.
CTV News reached out to SGI and was referred to the Ministry of Finance.
In a statement, the ministry said PST is calculated based on the purchase price or Canadian Red Book value, whichever amount is higher.
It said if an individual paid less than the red book value and the condition warrants a lower price, they can contact the ministry to determine if the purchase price may be used for PST instead.
“Evidence must be provided to support the lower purchase price,” the statement read.
Chad said they are currently going through the appeal process.
“It's my son; his first vehicle. He worked very hard, so every dollar counts. So, I ended up paying for the PST, but we're still in the process of trying to get that back if we can,” he said.
Meanwhile, Otto encourages people to beware of the tax when car shopping.
“I would hope they would take into consideration how much you actually have to spend on all the taxes, including buying the vehicle, so I would just look into doing some more research before you actually [buy],” he said.
The Ministry of Finance says neither it, nor SGI officials and motor license issuers, can disclose red book values.
CTVNews.ca Top Stories
Halifax police confirm body of Walmart employee was found in walk-in oven
Police have confirmed the body of an employee who died at a Walmart in Halifax over the weekend was found in a walk-in oven.
Man charged after attempting to force his way into the House of Commons: police
On the tenth anniversary of the shooting on Parliament Hill, a man was arrested and charged with trespassing as he attempted to push past security guards into the House of Commons.
'We all got through it': Canadian family stuck in Cuba recalls ordeal amid massive blackout
Ellen Francis says she and her family were having a great time at one of Cuba's famously stunning beaches and exploring the popular tourist town of Varadero when the situation turned into something like a scary movie.
Kevin Vickers says 'not a day that goes by' he doesn't think about Parliament Hill shooting
On the 10-year anniversary of the deadly Parliament Hill shooting, former sergeant-at-arms Kevin Vickers says there's 'not a day that goes by' where he doesn't think about it.
Cooldown expected across Canada before above-seasonal temperatures return
Canada is getting served a smorgasbord of weather this week. The West saw its first sign of winter, while the eastern half of Canada experienced summer-like temperatures on Tuesday.
Former Conservative leader says Trudeau 'should move on' amid efforts to oust him
Former Conservative leader Erin O'Toole says Prime Minister Justin Trudeau 'should move on,' as he faces growing inner-caucus turmoil.
One dead in multistate E. coli outbreak tied to McDonald's Quarter Pounders, CDC says
The U.S. Centers for Disease Control and Prevention issued a food safety alert Tuesday regarding an E. coli outbreak that it says is linked with McDonald's Quarter Pounders.
Butter shoplifters strike again! Two more large-scale thefts reported in Guelph, Ont.
At least seven large-scale butter thefts have been reported in Guelph, Ont. over a 10-month period, including two hauls in just the last month.
Are Listeria recalls on the rise or are we just hearing more about them?
Consumers in Canada are being told to check their freezers after hundreds of frozen waffle products were recalled for fears of a possible Listeria contamination. The voluntary recall was just the latest in a string of listeria-related recalls in North America.