Chris Lethbridge is taking a stand against ICBC and the B.C. government after being told he owes sales tax based on an $11,000 estimate for a used truck that cost him $2,100.

The Salmon Arm man said he purchased the truck, a 2008 Dodge with about 300,000 kilometres on it, in a private sale in October.

B次元官网网址淲e did the deal in the insurance office and as soon as I made the deal, they said that truck is worth $11,000, you owe taxes on $11,000B次元官网网址�,B次元官网网址� said Lethbridge.

B次元官网网址淚B次元官网网址檓 not paying about $1,300 in taxes on a vehicle I paid $2,100 for. ItB次元官网网址檚 ludicrous.B次元官网网址�

In February, the B.C. government announced to prevent tax avoidance by people selling used vehicles privately.

B次元官网网址淭his approach would align B.C.B次元官网网址檚 treatment of private vehicle sales with the majority of other provinces and is intended to address tax avoidance arising from the under reporting of the price of motor vehicles from private sales,B次元官网网址� explained the province. B次元官网网址淭he measure will not apply for motor vehicles involved in a trade-in.B次元官网网址�

Now, at the time of registration, the average wholesale value of a vehicle is determined using the Canadian Black Book valuation guide. If the average wholesale value is greater than the price paid, the average wholesale value is used to calculate what is owed for provincial sales tax.

Lethbridge said he called two other ICBC offices and received different quotes on his truck, one at $8,300 and another at $13,500. Meanwhile, he said the two other guides used to determine a vehicleB次元官网网址檚 value, Edmunds and the Kelley Blue Book, estimate his truck to be worth anywhere from $3,200 to $8,500.

Lethbridge said he was also informed that if his truck, once registered and insured, were to be in an accident and written off, itB次元官网网址檚 unlikely his payout would be based on the $11,000 estimate.

B次元官网网址淥h no, no, weB次元官网网址檒l have to do an estimate and appraisal on the vehicle to find out what itB次元官网网址檚 worth,B次元官网网址� said Lethbridge. B次元官网网址淎nd you can guarantee theyB次元官网网址檒l go to the EdmundB次元官网网址檚 book where the truck is only worth three grand.B次元官网网址�

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Currently, LethbridgeB次元官网网址檚 work evaluating commercial vehicle drivers has him travelling to Revelstoke. HeB次元官网网址檚 borrowing his dadB次元官网网址檚 vehicle for this, while his truck remains parked, uninsured and unregistered. He said heB次元官网网址檚 already put about $2,000 of work into the vehicle, and it needs at least another $3,300 plus the cost of tires.

Lethbridge said he could challenge ICBCB次元官网网址檚 evaluation of the truck, but would have to pay to have an assessment done.

150 Mile resident Graham Hugill is going through the same thing. A truck he bought for $35,000 through a private sale sits parked, unregistered and uninsured at his home after he was told by ICBC the vehicle is worth $47,240.

B次元官网网址淭hatB次元官网网址檚 $12,240 that I didnB次元官网网址檛 spend so why am I paying tax on it?B次元官网网址� said Hugill, who has taken his own stand against ICBC and the province with a petition on change.org titled. Hugill noted he is not looking for donations, just signatures.

Shuswap MLA Greg Kyllo said heB次元官网网址檚 received a number of calls regarding taxation on used vehicles.

B次元官网网址淭he real challenge here is that government has taken an approach that all used car buyers are somehow tax cheats,B次元官网网址� said Kyllo, noting it has always been within ICBCB次元官网网址檚 power to audit or challenge transactions. Instead, the buyer now shoulders the burden of having to prove a vehicleB次元官网网址檚 value.

B次元官网网址淎gain, this is a government thatB次元官网网址檚 taking the premise that everybody is a tax cheat so you will pay your taxation based on a number we take out of a book without giving consideration of the transaction between the two individuals.

B次元官网网址淚magine if you went to Best Buy and you suddenly are going to be taxed not on the itemB次元官网网址檚 sale price, but on what the manufacturers suggested retail price is. ThatB次元官网网址檚 basically what government is doing,B次元官网网址� said Kyllo.

Kyllo said a private members bill tabled by the BC Liberals three weeks ago would largely have remedied the NDPB次元官网网址檚 used car tax assessment bill, but it was ignored.

Asked what course of action people have, Kyllo advised writing to the B.C. government.

B次元官网网址淲e do have a new premier who was just sworn in on Friday. Maybe the new premier might have some heart and act on changing this legislation.B次元官网网址�

Lethbridge said he plans to be a thorn in the side of the B.C. government and ICBC.

As for his truck, he welcomes ICBC to pay for the cost of fixing it up to its assessed value.

B次元官网网址淚f ICBC wants to say this truck is worth $11,000B次元官网网址� they can pay to bring this truck up to $11,000 and I will gladly pay the taxes on it.B次元官网网址�

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