Some people buying used cars in Saskatchewan say they're upset about the way the province is charging provincial sales tax on the vehicles.

The six per cent tax was added to used vehicles with a value over $5,000 in the latest provincial budget — a move estimated to add $95 million to provincial coffers.

For a decade before that, the province maintained a PST exemption on light used vehicles, such as cars, trucks and sport-utility vehicles.

But private buyers recently discovered that if the purchase price of the vehicle is lower than that listed in the Automobile Red Book price, they'll be taxed on the Red Book value — which in some recent cases is far more than they actually paid for the vehicle.

The province is taxing at whichever value is higher.

For Angie Hayward, that meant the Honda CRV she bought last month for $9,500 in a private sale was taxed at a Red Book value of $14,600 when she went to plate it.

She ended up paying about $876 in tax. Not only did that catch her by surprise, but the province's methods left her with a bad taste in her mouth.

Angie Hayward purchased a used SUV in April. She said she does not believe the way her purchase was taxed is fair. (Chanss Lagaden/CBC News)

"It just doesn't seem fair," Hayward said. She says she wasn't aware of the new tax policy.

The Red Book gives values for vehicles in premium condition, and is used by banks and insurance companies. Accessing the book itself online costs money.

Provincial finance officials say other provinces also use the Red Book to tax used car sales.

Mileage, condition not reflected

Tajinder Grewal found out about the changes while transferring ownership of a 2010 Dodge Charger he bought over the weekend.

Saskatchewan Government Insurances bases car values for tax purposes on the Red Book value. For Grewal, that was a difference of more than $3,600 from the price he paid. (CBC News) "This Red Book value doesn't reflect the mileage and the condition of this car," he said.

His $6,200 purchase was taxed at a Red Book value of $9,894. The $593 in taxes he paid amounts to being taxed at a rate of 9.6 per cent from the actual purchase price.

When he got home, he was still mad and took to Facebook to write a post about the experience that now has more than 2,000 shares.

"People are really angry. People think it's not fair they … are not taxing on the purchase price," Grewal said.

Officials say anyone who feels they've paid too much tax can apply for a rebate.