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 pay 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
BREAKING Canada will cut its permanent immigration levels by at least 20 per cent
Canada will lower the number of permanent immigrants it allows into the country by at least 20 per cent from its previous target of 500,000, CTV News confirmed Wednesday.
Trudeau says Liberals 'strong and united' despite caucus dissent
Prime Minister Justin Trudeau says the Liberal party is 'strong and united,' despite efforts from within his caucus to oust him as leader.
'Canadians can breathe a sigh of relief': Bank of Canada governor on interest rate cut
The Bank of Canada made a sizable cut to its key lending rate Wednesday from 4.25 per cent to 3.75 per cent as the global economy continues to expand. The half percentage point cut is the fourth rate cut in a row by the central bank as inflation dropped from 2.7 per cent in June to 1.6 per cent in September.
CEO of N.B. potato chip company taking 'extended leave of absence' after arrest
The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.
Memorial growing outside Halifax Walmart where employee was found dead
A memorial is growing outside a Walmart in Halifax after a 19-year-old employee was found dead inside an oven in the store Saturday night.
Search efforts begin at Prairie Green Landfill: Manitoba government
A search has started at Prairie Green Landfill for the remains of two victims of a serial killer.
'Things are very hard here': Popular Toronto crossing guard asks community for help finding work
He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.
Turkish jets strike Kurdish militant targets in Iraq and Syria following attack on defence company
Turkiye’s air force struck Kurdish militant targets in Iraq and Syria on Wednesday in apparent retaliation for an attack at a key state-run defence company that killed five people and wounded more than a dozen others.
Air Transat laying off hundreds of flight attendants, says cuts are temporary
Air Transat says it is laying off as many as 400 flight attendants, but plans to bring them back to work at some point.