Some still navigating PST changes on used cars

The most-headline grabbing piece of this week’s provincial budget was the change to the PST.

As of April 11, the provincial sales tax (PST) is now applied to used cars.

But there is a bit of a break, at least for some consumers.

Some drivers who bought a used vehicle prior to the budget and still had to pay PST can expect their money back.

“We will refund the PST that was collected by SGI on that vehicle that was purchased just prior to budget,” confirmed Brent Hebert with the finance ministry.

Consumers used to pay PST on used vehicles prior to 2007.

“The process we’re following right now is no different than the process that we followed prior to 2007 when used vehicles were taxed back then,” said Hebert.

He explained how the government uses what is called red book value, or in other words, the fair market value of used vehicles.

Hebert said in cases where the red book value is higher than the purchase price, the PST is applied to the red book value.

In situations where that value is applied to vehicles with excessive kilometres, use or damage, Hebert said the buyer can contact the finance ministry and they can undertake a review.

In cases where it’s determined the purchase price is more appropriate, Hebert said they will refund the difference in those incidents as well.

He noted, on average, there are 35 vehicles a year where that situation occurs.

The change is being welcomed by the Saskatchewan Auto Dealers Association (SADA).

“If you bought a $20,000 vehicle and traded it in with a $10,000 one, the trade in will be discounted by six per cent,” explained Maurice Plemel with the SADA.

Plemel argues with Saskatchewan now the same as the rest of Canada on this PST application, it creates a level playing field for the dealers and is easier for the consumer to navigate.

Along with the PST changes on Energystar appliances the government expects to make 98 million dollars with these changes.

– with files from Kevin Martel