B.C. luxury tax prompts restorer to ship 1930 Bentley back to England
By the time you read this, the historic work of art that is the restored 1930 Bentley 6.5-litre Speed Six completed by Vancouver British-car enthusiast Oliver Young will be on a ship heading back to England.
No one in Canada will get to see this amazing tribute to the four factory team cars that W.O. Bentley put in service to win the famed 24 Hours of Le Mans race in 1929 and 1930. Why? Young is not willing to pay the enormous cost to register his car in British Columbia.
He cites the luxury tax the B.C. government applied in April 2018. Buyers of cars costing up to $55,000 pay seven per cent provincial tax. The tax on automobiles over that price goes to eight per cent, and continues to rise to 15 per cent on cars over $125,000. There is a 20 per cent tax on cars costing more than $150,000. On the surface, it seems logical to make people pay more for expensive cars. But Oliver Young and fellow hobbyists see nothing fair in a punishing tax that makes purchasing, restoring and registering rare vintage cars in the province unaffordable.
Young bought the rare Bentley in October 2018 and began the long restoration process. It was a body and frame, with parts stored in three sheds at a country home in central England. He trucked the pieces to a friend's home in southern England, where the vehicle was roughly reassembled for its journey to Canada. The Bentley was on a ship when he learned of the new luxury tax. He immediately changed the shipping status to temporary import, realizing he would not want to pay the enormous cost to register the car in British Columbia.
Once landed, Young spent approximately 2,400 hours on a meticulous restoration in his Vancouver home garage. He was eager to drive the car but would have to register and insure it first.
After taking the car from boxes of pieces to world-class restoration standards, he would have to pay $75,000 in provincial sales tax to register the 90-year-old car. That is an unthinkable amount for the Vancouver home builder, trained turbine helicopter mechanic and former partner of Octagon Motors, an MG restoration business.
“I'm not opposed to paying taxes as long as it is fair,” Young says. “I was optimistic that a change in government would result in the removal of this tax, which we believe has had unintended consequences…. But that didn't happen.”
His email inbox quickly filled up when he wrote to fellow car restorer-collectors, saying the luxury tax is beyond unfair, and that he had made the hard decision to send the completed car back to England.
“It appears there is no understanding of the collecting of vintage and classic cars and the people who buy them. Or, indeed, the use to which they are put,” a fellow restorer wrote. Another said: “I have written letters to MLAS explaining that people who buy other valued things for their hobbies such as boats, second homes, artwork etc. don't have to pay luxury tax like car collectors. It's a way to tax the asset, even though many of the owners are not wealthy, but ordinary people who have saved to enjoy their hobby.”
Other responses point out the tax on collector vehicles has been paid many times as the vehicles have changed ownership over the years. The suggestion is that vehicles 25 years and older should be exempt from luxury taxes.
Young says the tax has “virtually destroyed the collector-car market in B.C. We see cars being sold outside the province but very few coming in.”
He is unsure if he will pursue other unique cars to restore. “It's preserving history. But it might have to be done elsewhere,” he says.