Gage Haubrich is the Prairie Director for the Canadian Taxpayers FederationSaskatchewanians drive a lot. And the government of Saskatchewan makes sure to involve itself in every vehicle transaction possible, to soak up as much in taxes as it can.Whether it’s the minivan to take your kids to school or one of the many farm trucks that dot the yard, Saskatchewanians are no stranger to having multiple vehicles.And every time you go to sell or purchase one of these vehicles that’s worth more than $5,000, the government expects you to hand them a cheque for the six per cent PST on it, no matter how many times it’s been bought and sold before..On a vehicle worth just over $5,000, buyers will have to fork over about $300 to the government.But it wasn’t always this way.In 2007, the Saskatchewan Party under then leader Brad Wall campaigned on removing PST from used vehicle sales. Wall said it strikes people as “dumb” to pay PST on the same used car multiple times.The government made good on its promise in November 2007.“As of today, people buying used light vehicles will not have to pay the PST where tax has previously been paid in full,” said then finance minister Rod Gantefoer..But in 2018, the government decided to do something dumb. It reintroduced PST on used vehicles that were worth more than $5,000. In the same budget, the government also tacked on the PST to restaurant meals, snack foods and children’s clothing.Maybe in 2018 the $5,000 threshold stopped the PST from hitting low-income car buyers who just needed a new set of wheels. But with inflation, it’s tough to find a drivable car for less than $5,000. The average used car sold today costs about $38,210 and comes with a $2,300 sales tax bill.It’s important to note that the sale price is not the only thing the government considers when sending you your PST bill. If the government’s red book value shows that the car is worth more than you paid for it, they send you a PST bill for that amount. But of course, if you paid more than the red book value, the government expects a PST cheque for the higher amount..The government is punishing car buyers for finding a good deal. A teenager was shopping for his first truck in 2024 and found a smoking deal on a used Silverado for $12,300. He expected a $738 tax bill. Instead, the government valued his truck at $24,500 and sent him a $1,470 bill.The government does let you reduce the PST you pay by subtracting the value of any vehicle you trade-in, but only if tax has been paid on it before. If you don’t have a trade-in, you are out of luck.When the government brought the tax in, it expected to earn about $95 million a year from it. Last year’s public accounts show that the government spent almost $1 billion more than it budgeted. Taxing people looking for a used car is not putting a dent in the government’s habit of blowing its own budget..Instead of trying to take as many tax dollars as possible by taxing the same vehicle multiple times, the government should just stick to its own budget and allow taxpayers to keep more money in their wallets.Saskatchewan is a huge province and people often drive hours every day, to work, to visit family, or to a kid’s baseball tournament. A reliable car is a necessity.The federal government doesn’t even charge GST on vehicles bought through private sales. Alberta doesn’t charge PST on any vehicle, because it doesn’t have a sales tax.The government needs to scrap the PST on used vehicles. It’s a transparent tax grab from Regina. It was a dumb idea in 2007 and it’s an even dumber idea today as car prices climb higher and buyers are stuck with bigger tax bills.Gage Haubrich is the Prairie Director for the Canadian Taxpayers Federation.
