Standard aerodynamic devices exempt from BC sales tax

LANGLEY, B.C. — OEM-installed aerodynamic devices on new tractor units are now exempt from B.C.’s provincial sales tax (PST), reports the B.C. Trucking Association.

As long as the dealer itemizes the standard devices separately on the bill of sale, the province’s 2008 budget specifically exempts aerodynamic bumper and tank skirts, tractor-trailer gap fairings and tractor roof fairings and side skirts from the sales tax, says BCTA.

The Consumer Taxation Branch of the Ministry of Small Business and Revenue will also require the bill of sale to specify a line item called, for example, "aerodynamic equipment,” together with a lump sum price for that equipment and a list itemizing each device included.

BCTA explains that new model trucks can come equipped with gap and roof fairings, trailer side skirts and an aerodynamic bumper and tank skirts.

These are not optional add-ons but are standard equipment, meaning that the truck cannot be purchased any other way. If the dealer or manufacturer can specify the wholesale price of all of these components individually or as a lump sum, the cost of the "aerodynamic package" would qualify for the PST exemption at point of sale.

If the truck has a sticker price of $150,000 and the aerodynamic equipment that comes pre-installed has a lump sum value of $10,000 (as determined by the manufacturer), the $10,000 is PST exempt as long as the dealer can provide proof that the $10,000 in fact only covers that equipment.