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Hidden tax hike on used snowmobiles, all-terrain vehicles and motorcycles

Author: Colin Craig 2010/10/13
The following letter to Minister Rosann Wowchuk describes a recent hidden tax hike by the provincial government on used snowmobiles, motorcycles and all-terrain vehicles.

If you're fuming by the end of it, email the Minister - [email protected]


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Dear Minister Wowchuk,
 
I am writing to you today regarding your government's recent sales tax change for used motorcycles, snowmobiles and all-terrain vehicles.
 
As you are aware, your government previously applied the PST on the sales price of those vehicles. However, your 2010 budget changed the application of the tax - as it now is based on the higher value of either the sales price or the book value.
 
A Manitoba taxpayer recently contacted the Canadian Taxpayers Federation as he was upset about the tax change. He indicated that he recently purchased a used snowmobile for $5,500, but had to pay the sales tax on $6,350 - the vehicle's book value. That meant he had to pay about $60 more due to the tax change.
 
Could you please answer the following questions about the tax increase:
 
1) Which stakeholders in Manitoba indicated that the tax change should occur?
 
2) Why did the change occur?
 
3) Why did your department's March tax bulletin indicate “The following taxation changes were announced by Manitoba Finance Minister Rosann Wowchuk in her Budget Address on March 23, 2010”  when in fact your budget speech does not mention the tax change? What is being done to correct the mistake?
 
4) Why was it listed under the "Technical and Administrative Measures" section of the budget when in fact it was a tax increase?
 
5) Do you feel your department has a duty to explain tax changes in plain English to taxpayers? - If yes, why was the tax hike hidden in cryptic language in the budget - The vehicle valuation program will be expanded to include private purchases of motorcycles, all-terrain vehicles and snowmobiles
 
6) How did your government communicate the tax change to Manitoba taxpayers (particularly those who use motorcycles, all-terrain vehicles and snowmobiles)?
 
Thank you for your attention to this matter.
 
--
Colin Craig
Prairie Director
Canadian Taxpayers Federation
 
Phone | 800.772.9955
Cell | 204.227.5561
 
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