B.C. VIEWS: Tax my car, not my income

Opponents of the HST can't seem to resist making the tax sound worse than it really is.

The NDP has been surfing on a wave of indignation about the introduction of the HST for nearly two years.

The NDP has been surfing on a wave of indignation about the introduction of the HST for nearly two years.

VICTORIA – I recently bought a used vehicle. Bitter experience with used cars sold privately led me to make the purchase at an established, reputable dealership, and I’m pleased with the result.

The first car I ever bought was a private sale. A young man showed off the old car he had painted himself, while his mother smiled and offered homemade lemonade. Sold for $600.

The choice of drink proved appropriate when the engine clattered to a final halt a week later. It was then I discovered that the crankcase contained mostly STP Oil Treatment, to conceal the engine’s true state.

At the dealership this spring, the harmonized sales tax was not a hot topic. Like most goods, new and used vehicles were subject to 12 per cent PST and GST before, and they are subject to 12 per cent HST now.

When I mentioned this in a news report last week, an astute reader in Nanaimo reminded me that it’s not quite that simple. Vehicles, boats and aircraft sold by private individuals are exempt from GST. This was one of the populist concessions the Mulroney government made in an effort to placate angry voters 20 years ago. In B.C., prior to July 2010, private sales were subject to seven-per-cent PST only.

During the hubbub over the implementation of the HST in its 2010 budget, the B.C. Liberal government also increased tax on private vehicle sales by five per cent, from seven to 12 per cent. The stated reason was to provide “comparable treatment” for private and commercial sales of used vehicles.

This provoked an exchange of partisan accusations that typically passes for debate in the B.C. legislature. It’s a payoff to car dealers, the NDP screamed. You guys opposed all of our income tax cuts and now you’re pretending to support lower taxes, the B.C. Liberals yelled back.

Out in the real world, one can observe the effect of a tax structure that gives an advantage to private sellers.

Municipal governments call them “curbers.” They use their garage, driveway and street to repair and market an endless series of used cars. Whether they are crooks or not, their efforts are every bit as appealing to the neighbourhood as the guy with multiple illegal suites whose tenants plug up the parking for the whole block.

In each case, they violate zoning rules and hog services for personal benefit. And if you think they pay income or other taxes on their home businesses, I have a 1973 Pinto you might want to test-drive.

The subject of used cars came up last week when NDP leader Adrian Dix belatedly launched his own anti-HST tour. Apparently he’s having second thoughts about letting Bill Vander Zalm set NDP tax policy based on a world government conspiracy theory.

Dix’s first media event was staged in a Burnaby kitchen. The homeowner dismissed the $350 HST rebate he has been offered to offset costs such as summer camp for his two kids, saying that will be gone several times over if he buys a used car.

This clearly implies that HST has been extended to used cars. This is the sort of claim that drives much of the rage against it, as people simply scan their bills for those hated three letters.

There are signs that people understand their taxes better, however. An Angus Reid poll last week found that 58 per cent of British Columbians now prefer to pay taxes on their consumption rather than their income.

Tom Fletcher is legislative reporter and columnist for Black Press and BCLocalnews.com

twitter.com/tomfletcherbc

Just Posted

Pam Bottomley (executive director), right and Sandy Hurley (president) of the Parksville Downtown Business Association visit the PQB News/VI Free Daily studio. (Peter McCully photo)
PQBeat: Downtown Parksville gears up for post-pandemic bounce back

Podcast: Hurley, Bottomley chat about what’s ahead for the PDBA

(Black Press file photo)
RCMP: Air ambulance called to Whiskey Creek after crash involving 2 motorbikes

Both riders taken to hospital with serious injuries

(File photo)
Crime report: Crooks busy pilfering bikes throughout Parksville Qualicum Beach area

Thefts among 295 complaints Oceanside RCMP deal with in one-week period

The Arrowsmith Search and Rescue logo on the back of a service vehicle. (Mandy Moraes photo)
Parksville and Qualicum Beach provide letters of support for Arrowsmith Search and Rescue

ASAR asks for increase in funding, one-time capital grant and for RDN to buy out current facility

The proposed running track upgrade at Ballenas Secondary is now on course. (PQB News file photo)
RDN: Parksville track upgrade project gains some traction

Staff recommends board approve $204,000 funding

People watch a car burn during a riot following game 7 of the NHL Stanley Cup final in downtown Vancouver, B.C., in this June 15, 2011 photo. THE CANADIAN PRESS/Geoff Howe
10 years ago: Where were you during the 2011 Vancouver Stanley Cup Riots?

Smashed-in storefronts, looting, garbage can fires and overturned cars some of the damage remembered today

Vancouver courthouse. (Photo: Tom Zytaruk)
Man loses bid to appeal conviction for 1999 rape at Abbotsford music festival

James Redden, 53, formerly of Nanaimo, was found guilty in 2019 following six-day trial

A health-care worker holds up a sign signalling she needs more COVID-19 vaccines at the ‘hockey hub’ mass vaccination facility at the CAA Centre during the COVID-19 pandemic in Brampton, Ont., on Friday, June 4, 2021. This NHL-sized hockey rink is one of CanadaÕs largest vaccination centres. THE CANADIAN PRESS/Nathan Denette
‘Vaxxed to the max’: Feds launch Ask an Expert campaign to encourage COVID shots

Survey shows that confidence in vaccines has risen this spring

Port Alberni court house (Alberni Valley News)
Inquest set into 2016 death of B.C. teen after a day spent in police custody

18-year-old Jocelyn George died of heart failure in hospital after spending time in jail cell

Children’s shoes and flowers are shown after being placed outside the Ontario legislature in Toronto on Monday, May 31, 2021. THE CANADIAN PRESS/Frank Gunn
Ontario commits $10 million to investigate burial sites at residential schools

Truth and Reconciliation Commission identified 12 locations of unmarked burial sites in Ontario

Singer-songwriter Jann Arden is pictured with a draft horse. (Canadian Horse Defence Coalition)
Jann Arden backs petition to stop ‘appalling’ live horse export, slaughter

June 14 is the International Day to End Live Export of Animals

Two hundred and fifteen lights are placed on the lawn outside the Residential School in Kamloops, B.C., Saturday, June, 13, 2021. The remains of 215 children were discovered buried near the former Kamloops Indian Residential School earlier this month. THE CANADIAN PRESS/Jonathan Hayward
Days after Kamloops remains discovery, Tk’emlups families gather to unite, move ahead

‘We have to work together because this is going to be setting a precedent for the rest of the country’

In this Saturday, May 29, 2021, file photo, people crowd the Santa Monica Pier in Santa Monica, Calif. California, the first state in America to put in place a coronavirus lockdown, is now turning a page on the pandemic. Most of California’s coronavirus restrictions will disappear Tuesday, June 15, 2021. (AP Photo/Damian Dovarganes, File)
With COVID tamed, it’s a ‘grand reopening’ in California

No more state rules on social distancing, no more limits on capacity, no more mandatory masks

Montreal Canadiens goaltender Carey Price (31) is scored on by Vegas Golden Knights defenseman Alec Martinez, not pictured, during the second period in Game 1 of an NHL hockey Stanley Cup semifinal playoff series Monday, June 14, 2021, in Las Vegas. (AP Photo/John Locher)
Habs fall 4-1 to Vegas Golden Knights in Game 1 of NHL semifinal series

Match was Montreal’s first game outside of Canada in 2021

Most Read