You probably didn’t know it but the Manitoba government recently increased sales taxes on used snowmobiles, all terrain vehicles and motorcycles. The tax increase may not affect you, but the government’s growing tendency to hide unflattering tax news like this certainly will.

Previously, consumers paid the provincial sales tax on such vehicles based on the price they paid for them. For example, if you bought a used snowmobile for $5,500, you would have paid the province’s 7 per cent sale tax ($385.00) when it was registered.

However, as a result of the government’s recent tax change, consumers now pay the PST on either the sale price of the vehicle or its “gold book” value; whichever is higher.

Thus, if a bureaucrat’s guide book says the snowmobile you purchased for $5,500 for is worth $6,350, then you would be responsible for paying the tax on the latter. In that case, you would have handed over $444.50 to the government; $60 more than under the previous system.

Some might suggest we’re splitting hairs, but $60 is $60. For many families that’s a dinner out or half a grocery bill.

In fact, the case above actually happened to the taxpayer who brought the matter to the attention of the Canadian Taxpayers Federation – and he was anything but amused by the situation.

While the new taxing system for used motorcycles, snowmobiles and ATVs is aggravating, it has actually been in place for used cars, trucks and vans for decades. It’s just another way the government nickel and dimes taxpayers to death in this province.

Now consider the lack of communication for the tax increase. It wasn’t mentioned in the Minister’s 2010 budget speech, any of the government’s budget-related news releases and certainly wasn’t included in their budget advertising.

The only place it appeared in the budget was on page C7 under the “Technical and Administrative Measures” section. The government noted “The Vehicle Valuation Program will be expanded to include private purchases of motorcycles, all-terrain vehicles and snowmobiles.”

That clear as mud wording is probably the reason why no media outlet appears to have noticed the tax change to date. 

The government may claim it communicated the change as it was included in their March Tax Bulletin. However, it appears shortly after the note “The following taxation changes were announced by Manitoba Finance Minister Rosann Wowchuk in her Budget Address on March 23, 2010.”

Again, the Minister’s speech says nothing about the tax change. Therefore, the tax bulletin is incorrect.

While the hidden tax increase is disappointing, it shouldn’t come as a total surprise. After all, the government routinely chooses to hide unpleasant tax changes in their budget documents.

In 2008, taxpayers learned after the fact that the government cheated school property taxpayers by $25 each. In 2009, the government completely cancelled its modest plans for personal income tax relief without any notice to the public. Perhaps the tax hike discussed in this column was the hidden nugget from the 2010 budget.

A few things are quite clear; the government should repeal its decision and stop nickel and diming taxpayers. Moreover, they need to start being open and transparent about tax increases and not slide them into the fine print.