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4th Session, 40th Legislature

This HTML version is provided for ease of use and is based on the bilingual version that was distributed in the Legislature after First Reading.

Bill 36

THE BUDGET IMPLEMENTATION AND TAX STATUTES AMENDMENT ACT, 2015


  Bilingual version (PDF) Explanatory Note

(Assented to                                         )

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

PART 1

THE CORPORATION CAPITAL TAX ACT

C.C.S.M. c. C226 amended

1           Subsection 6(2) of The Corporation Capital Tax Act is amended by striking out "5%" and substituting "6%".

PART 2

THE FUEL TAX ACT

C.C.S.M. c. F192 amended

2           The Fuel Tax Act is amended by this Part.

3           Clause 9(1)(g) is amended by striking out "or" at the end of subclause (ii) and replacing subclause (iii) with the following:

(iii) operating an engine exclusively off-road to recover ore, or

(iv) transporting ore exclusively off-road from a mine in Manitoba to a processing centre in Manitoba;

4           The following is added after subsection 13(2):

Refund of tax — aviation fuel used for international commercial passenger flight

13(2.1)     A buyer of aviation fuel that is delivered directly into a fuel tank of an aircraft for use in a regularly scheduled, non-stop passenger flight from an airport in Manitoba to an airport outside of North America is entitled to a refund of the tax paid by the buyer on that fuel. For this purpose, Hawaii is outside of North America.

PART 3

THE HEALTH AND POST SECONDARY

EDUCATION TAX LEVY ACT

C.C.S.M. c. H24 amended

5           The description of M in the formula in subsection 3.2(2) of The Health and Post Secondary Education Tax Levy Act is replaced with the following:

M   is the total remuneration paid by the carrier for the year to its employees who work in Manitoba, other than remuneration paid to an employee for operating a commercial truck outside of Manitoba or on an interjurisdictional trip;

PART 4

THE INCOME TAX ACT

C.C.S.M. c. I10 amended

6           The Income Tax is amended by this Part.

7           Subsection 4(1) is amended

(a) in clause (a) of Rule 1, by striking out "an inter vivos trust" and substituting "a trust"; and

(b) in clause (b) of Rule 9 of the English version, by striking out "co-op education and apprenticeship" and substituting "paid work experience".

8           Subsection 4.1(3) is amended

(a) by striking out "inter vivos" in the section heading;

(b) by striking out "(2.5)" and substituting "(2.6)"; and

(c) by striking out "an inter vivos trust" and substituting "a trust".

9(1)        The description of B in the formula in subsection 4.6(12) is amended by adding "and (15.3)" after "(3) to (10)".

9(2)         Subsection 4.6(13) is amended

(a) in clause (a), by striking out "and (15.1)" and substituting ", (15.1) and (15.3)"; and

(b) in clause (b) of the description of C in the formula, by striking out "and (15.1)" and substituting ", (15.1) and (15.3)".

9(3)        Clause (b) of the description of B in the formula in subsection 4.6(14.1) is amended by striking out "and (15.1)" and substituting ", (15.1) and (15.3)".

9(4)        The following is added to section 4.6 as subsection 4.6(15.3):

Volunteer firefighter or search and rescue amount

4.6(15.3)   If an amount is deducted under section 118.06 (volunteer firefighter tax credit) or section 118.07 (search and rescue volunteer tax credit) of the federal Act in computing an individual's tax payable under that Act for a taxation year, the individual may claim the amount of $3,000 for that taxation year.

9(5)        Subsection 4.6(16) is amended

(a) in the description of D in the formula, by striking out "(9) and (13)" and substituting "(9), (13) and (15.3)"; and

(b) in clause (b) of the description of E in the formula, by adding "and (15.3)" after "(3) to (13)".

10          Clause 5.4(4)(b) is replaced with the following:

(b) the total of all amounts each of which is the municipal tax reduction given in respect of a principal residence of the individual for the year or a part of the year.

11          Clause 5.5(2)(c) is replaced with the following:

(c) the amount, if any, by which the individual's occupancy cost for the year exceeds the individual's education property tax credit for the year.

12           Subsection 5.11(2) is amended

(a) in the part before the formula, by striking out "2010" and substituting "2014"; and

(b) in the formula, by striking out "$1,275." and substituting "$1,400".

13          The table in subsection 7(3.1) is amended

(a) in the last row, by adding "and before 2016" after "2013"; and

(b) by adding another row at the end with

(i) "calendar year after 2015" in the first column,

(ii) "$450,000." in the second column, and

(iii) "$1,233." in the third column.

14(1)       The definition "investment tax credit" in subsection 7.2(2) is amended

(a) in clause (a), by striking out everything after "but without treating" and substituting the following:

"the following as government assistance or non-government assistance under those provisions:

(i) the investment tax credit under this section,

(ii) a green energy equipment tax credit of the corporation under section 10.3,

(iii) assistance from Manitoba Hydro,

(iv) assistance under the Investments in Forest Industry Transformation program of the Government of Canada,"

(b) in the part of clause (b) after subclause (ii), by striking out "the investment tax credit as government assistance" and substituting "anything referred to in subclauses (a)(i) to (iv) as government assistance or non-government assistance".

14(2)       Clause 7.2(2.5)(b) is amended by adding "except for section 10.3" at the end.

15          The definition "research and development tax credit" in subsection 7.3(1) is amended

(a) in subclause (b.1)(i), by striking out ", or" and substituting "that ends in 2005,"; and

(b) by adding the following after subclause (b.1)(i):

(i.1) the 20 immediately preceding taxation years that ends after 2005, or

16(1)       Subsection 7.5(1) is amended in the following provisions by striking out "co-op education and apprenticeship" and substituting "paid work experience":

(a) clause (f) of the definition "excluded production expenditure" in the English version;

(b) clause (d) of the definition "government assistance" in the English version;

(c) the definition "Manitoba trainee".

16(2)       Clause 7.5(2)(e) is amended by striking out "2017" and substituting "2020".

17          Clause (f) of the description of A in the formula in subsection 7.6(6) is amended by striking out "2017" and substituting "2020".

18(1)       Subsection 7.19(1) is amended

(a) in the section heading, by adding "for operator" at the end; and

(b) in the subsection, by adding "under subsection (4)" after "investment tax credit".

18(2)       The following is added after subsection 7.19(1):

Refundable data processing centre investment tax credit for building lessor

7.19(1.0.1)  An eligible corporation that purchases or constructs a building and leases it to another eligible corporation with which it is dealing at arm's length for use by that other corporation, throughout the term of the lease, as a data processing building is deemed to have paid on its balance-due day for a taxation year, on account of its tax payable under this Act for the year, an amount equal to its data processing centre investment tax credit under subsection (4.0.1) for the year.

18(3)       Subsection 7.19(1.1) is amended

(a) in the section heading and in the section, by striking out "equipment" and substituting "property"; and

(b) by adding "under subsection (4.1)" after "investment tax credit".

18(4)       Subsection 7.19(2) is amended

(a) in clause (d) of the definition "data processing building", by striking out "by the corporation"; and

(b) by repealing the definitions "data processing centre equipment" and "data processing equipment" and adding the following definitions:

"data processing centre property" of a corporation means property

(a) that the corporation acquired by purchase or lease after April 17, 2012;

(b) that is or would be, if it were owned by the corporation,

(i) prescribed machinery and equipment as defined in subsection 4600(2) of the federal regulations for the purpose of the definition "qualified property" in subsection 127(9) of the federal Act, or

(ii) a property included in paragraph (o) of Class 12, paragraph (c) of Class 17, or in Class 42 or Class 50 in Schedule II to the federal regulations;

(c) that

(i) was never used for any purpose before it was acquired by the corporation, or

(ii) was refurbished when it was acquired by the corporation; and

(d) that is situated in Manitoba and is used, or will be used, in connection with the operation or maintenance of a data processing building. (« matériel de traitement de l'information du centre »)

"data processing property" of a corporation means property

(a) that the corporation acquired by purchase or lease after April 16, 2013 and before 2019;

(b) that is or would be, if it were owned by the corporation, a property included in Class 46 or Class 50 in Schedule II to the federal regulations;

(c) that was never used for any purpose before it was acquired by the corporation;

(d) that is not replacement property;

(e) in respect of which no amount is or has been included in computing any corporation's data processing centre investment tax credit for any taxation year; and

(f) that is situated in Manitoba and is used, or will be used, by the corporation exclusively, or nearly exclusively, for the purpose of data processing. (« matériel de traitement de l'information »)

(c) by replacing the definition "refurbished" in the English version with the following:

"refurbished", in relation to a property, means that at least 50% of the capital cost of the property is attributable to unused components installed since the property was last used or acquired for use or lease. (« remis à neuf »)

18(5)       Subsection 7.19(2.1) of the English version is amended by striking out "equipment" wherever it occurs and substituting "property".

18(6)       The part of subsection 7.19(3) before clause (a) is amended by striking out "subsection (1)" and substituting "this section".

18(7)       Subsection 7.19(4) is amended

(a) in the part before the formula, by striking out "A corporation's" and substituting "For the purpose of subsection (1), a corporation's";

(b) by replacing the description of A in the formula with the following:

A   is the total of all amounts each of which is, subject to subsections (6) and (6.1), 8% of the amount, if any, by which

(a) the corporation's capital cost of a data processing centre property purchased or constructed within the year and

(i) on or before December 31, 2018, or

(ii) after that date, if it was acquired as a replacement for property for which the corporation was entitled to claim a data processing centre investment tax credit, or

(b) the corporation's leasing cost for the year for a data processing centre property that it acquired by lease

(i) on or before December 31, 2018, or

(ii) after that date, if it was acquired as a replacement for property for which the corporation was entitled to claim a data processing centre investment tax credit,

exceeds

(c) the amount of any government assistance, other than a tax credit under this section, that was received or is receivable by the corporation in respect of that property and that,

(i) in the case of property referred to in clause (a), was not deducted in calculating the corporation's capital cost of the property, or

(ii) in the case of leased property, was not deducted in computing the corporation's data processing centre investment tax credit for that property for a previous year;

(c) in the description of B in the formula,

(i) in the part before clause (a), by striking out "subsection (6)" and substituting "subsections (6) and (6.1)",

(ii) in the part of clause (a) before subclause (i), by adding "by it" after "constructed",

(iii) in subclause (a)(i), by striking out "2015, or a later date prescribed by regulation" and substituting "2018",

(iv) in the part of clause (b) before subclause (i), by adding "that it" before "acquired", and

(v) in subclause (b)(i), by striking out "2015, or a later date prescribed by regulation" and substituting "2018".

18(8)       The following is added after subsection 7.19(4):

Lessor's data processing centre investment tax credit amount

7.19(4.0.1)  For the purpose of subsection (1.0.1), an eligible corporation's data processing centre investment tax credit for a taxation year is the amount determined by the following formula:

A + B

In this formula,

A   is the total of all amounts each of which is, subject to subsection (6), the lesser of the following amounts determined in respect of a data processing centre property purchased or constructed by it after 2013 and on or before December 31, 2018, and leased by it in the year to a corporation to which it is leasing a building as described in subsection (1.0.1):

(a) 2 2/3% of the amount by which its capital cost of the property exceeds the amount of any government assistance, other than a tax credit under this section, that was received or is receivable by the corporation in respect of that property and was not deducted in calculating the corporation's capital cost of the property,

(b) the amount, if any, by which three times the amount determined under clause (a) for that property exceeds the total of all amounts each of which was included as a tax credit under this subsection for that property in a previous year;

B   is the total of all amounts each of which is, subject to subsection (6), the lesser of the following amounts determined in respect of a building purchased or constructed by it after 2013 and on or before December 31, 2018, and leased by it in the year to another corporation as described in subsection (1.0.1):

(a) the amount determined by the following formula:

4.5% × C/Y

In this formula,

C   is the amount by which the corporation's capital cost of the building exceeds the amount of any government assistance, other than a tax credit under this section, that was received or is receivable by the corporation in respect of the building and was not deducted in calculating the corporation's capital cost of the building,

Y   is the term of the lease, in years;

(b) the amount, if any, by which 4.5% of the amount determined for C in the formula in clause (a) exceeds the total of all amounts each of which was included as a tax credit under this subsection for that building in a previous year.

18(9)       Subsection 7.19(4.1) is replaced with the following:

Data processing property investment tax credit amount

7.19(4.1)   Subject to subsection (4.2), for the purpose of subsection (1.1) a corporation's data processing property investment tax credit for a taxation year is the total of all amounts each of which is, subject to subsection (6), 8% of the amount, if any, by which

(a) the corporation's capital cost of a data processing property purchased within the year and on or before December 31, 2018; or

(b) the corporation's leasing cost for the year for a data processing property acquired by lease on or before December 31, 2018;

exceeds

(c) the amount of any government assistance, other than a tax credit under this section, that was received or is receivable by the corporation in respect of that property and that,

(i) in the case of property referred to in clause (a), was not deducted in calculating the corporation's capital cost of that property, or

(ii) in the case of leased property, was not deducted in computing the corporation's tax credit under this section for that property for a previous year.

18(10)       Subsection 7.19(4.2) is amended

(a) by striking out "data processing equipment investment tax credit" and substituting "data processing property investment tax credit for a taxation year"; and

(b) by adding "for that year" before "is at least $10,000,000".

18(11)      Subsection 7.19(6) is replaced with the following:

Limitations

7.19(6)     In determining a corporation's data processing centre investment tax credit or data processing property investment tax credit for a taxation year, no amount shall be included in respect of

(a) a property or building unless and until the corporation has filed with the minister, no later than one year after the filing-due date for the taxation year in which the property or building was acquired and in a form and manner authorized by the minister, the information about the property or building stipulated by the authorized form; or

(b) a property or building in respect of which an amount is or has been included in computing any other tax credit of the corporation under this Act.

18(12)      The following is added after subsection 7.19(6):

Further limitation

7.19(6.1)   In determining the data processing centre investment tax credit of an eligible data processing centre corporation, no amount shall be included in respect of a building or property acquired by lease if an amount in respect of that building or property is included in computing the data processing centre investment tax credit under subsection (4.0.1) of another corporation.

Member of partnership

7.19(6.2)   Where, in a particular taxation year of an eligible corporation that is a member of a partnership, an amount would, if the partnership were a taxable Canadian corporation, be a tax credit of the partnership under subsection (4), (4.0.1) or (4.1) for the taxation year of the partnership ending in that particular taxation year, the portion of that amount that may reasonably be considered to be the corporation's share of it is deemed to be a tax credit of the corporation under that subsection for that taxation year unless the partnership consents to an election under subsection (6.4) in respect of that credit for that taxation year.

Tiered partnerships

7.19(6.3)   For the purpose of subsection (6.2), a corporation that is a member of a partnership that is a member of another partnership is deemed to be a member of that other partnership.

Election to allocate credit to partner

7.19(6.4)   Where, in a particular taxation year of an eligible corporation that is a partner of a limited partnership,

(a) an amount would, if the partnership were a taxable Canadian corporation, be a tax credit of the partnership under subsection (4), (4.0.1) or (4.1) for the taxation year of the partnership ending in that particular taxation year; and

(b) the corporation files with its return for the particular taxation year an irrevocable election, made by the corporation with the written consent of the partnership, to allocate that entire amount to the corporation;

that amount is deemed to be a tax credit of the corporation under that subsection for that taxation year.

18(13)      Clause 7.19(7)(c) is repealed.

19(1)       The centred heading "CO-OP EDUCATION AND APPRENTICESHIP TAX CREDIT" before section 10.1 is replaced with "PAID WORK EXPERIENCE TAX CREDIT".

19(2)       Subsection 10.1(1) is amended

(a) in the definition "approved co-op program", by striking out everything after "education program" and substituting "approved by the Minister of Education and Advanced Learning for the purpose of the co-op student hiring incentive under this section.";

(b) by adding the following definitions:

"approved youth work experience training program" means a high school course or other training program approved by the Minister of Education and Advanced Learning for the purpose of the youth work experience hiring incentive under this section. (« programme approuvé de formation par acquisition d'expérience du travail »)

"qualifying youth" means an individual who has completed an approved youth work experience training program. (« élève admissible »)

(c) in clause (b) of the definition "employer", by adding "qualifying youth," after "with whom the";

(d) in the definition "qualifying period of employment",

(i) in the part before clause (a), by striking out "subsections (1.1) and (1.2)" and substituting "subsection (1.1)",

(ii) by striking out "and" at the end of clause (b), adding "and" at the end of clause (c) and adding the following after clause (c):

(d) in relation to the employment of a qualifying youth, a period of employment in that year in respect of which the following requirements are satisfied:

(i) the employer is resident in Manitoba or has a permanent establishment in Manitoba and has been approved by the Minister of Education and Advanced Learning for providing paid work experiences to qualifying youths,

(ii) the period of employment is within the employer's taxation year,

(iii) the period of employment begins after the youth last completed an approved youth work experience training program and ends no later than December 31 of the first year after the year in which the academic year in which the youth completed the program ends,

(iv) the youth is required to engage in productive work and not just observe the work of others,

(v) the youth's work is to be performed primarily in Manitoba.

(e) in the definition "qualifying work placement",

(i) in the part before clause (a), by adding ", subject to subsection (1.2)," after "means", and

(ii) in subclause (b)(i), by striking out everything after "approved co-op program"; and

(f) by repealing the definition "record of employment".

19(3)       Subsection 10.1(2) is amended by striking out "co-op education and apprenticeship" and substituting "paid work experience".

19(4)       Subsection 10.1(3) is amended

(a) in the part before clause (a), by striking out "co-op education and apprenticeship" and substituting "paid work experience"; and

(b) by replacing clause (a) with the following:

(a) the taxpayer's youth work experience hiring incentive for the year, as determined under subsection (3.1);

(a.1) the taxpayer's co-op student hiring incentive for the year, as determined under subsection (4);

19(5)       The following is added after subsection 10.1(3):

Youth work experience hiring incentive

10.1(3.1)   A taxpayer's youth work experience hiring incentive for a taxation year is the total of all amounts each of which is the lesser of the following amounts in respect of a qualifying period of employment of a qualifying youth:

(a) $5,000 less the total of all amounts each of which is the incentive determined under this subsection for any taxpayer in respect of a previous period of employment of that youth;

(b) 25% of the amount by which

(i) the total salary and wages paid to the youth for that period of employment,

exceeds

(ii) the amount of any other government assistance received or receivable by the taxpayer in respect of the salary and wages referred to in subclause (i).

For the purpose of clause (b), if the salary and wages were paid by a partnership in which the taxpayer is a general partner, the taxpayer is deemed to have paid that proportion of the salary and wages, and to have received that proportion of any government assistance received by the partnership, that corresponds to the taxpayer's share of the interests in the partnership.

19(6)       Subsection 10.1(4) is replaced with the following:

Co-op student hiring incentive

10.1(4)     A taxpayer's co-op student hiring incentive for a taxation year is the total of all amounts each of which is the lesser of the following amounts in respect of the employment of a co-op student under a qualifying work placement:

(a) $5,000 less the total of all amounts each of which is the incentive determined under this subsection

(i) for that taxpayer in respect of salary and wages paid to that student in a previous taxation year, or

(ii) for any taxpayer for a previous work placement of that student;

(b) 15% of the amount by which

(i) the total salary and wages paid by the taxpayer to the employee under that work placement for that year for work performed primarily in Manitoba,

exceeds

(ii) the amount of any other government assistance received or receivable by the taxpayer in respect of the salary and wages referred to in subclause (i).

For the purpose of clause (b), if the salary and wages were paid by a partnership in which the taxpayer is a general partner, the taxpayer is deemed to have paid that proportion of the salary and wages, and to have received that proportion of any government assistance received by the partnership, that corresponds to the taxpayer's share of the interests in the partnership.

19(7)       Clause (b) of the description of W in the formula in subsection 10.1(5) is amended by striking out "5%" and substituting "15%".

19(8)       Subsection 10.1(6.1) is amended by striking out "In determining" and substituting "Subject to subsection (6.2), in determining".

19(9)       The following is added after subsection 10.1(6.1):

Increased incentive for high school apprentice

10.1(6.2)   In determining the hiring incentive under subsection (6) in respect of a qualifying period of employment of a high school student at an early level of apprenticeship, the reference in the description of W in the formula in clause (6)(b) to "15%" is to be read as "25%".

19(10)      Subsection 10.1(9) is amended by adding "(3.1)," after "under subsection".

19(11)      Subsections 10.1(20) and (21) are repealed.

19(12)      Subsection 10.1(23) is amended by adding the following after clause (a):

(a.1) respecting youth work experience training programs and qualifying periods of employment for qualifying youth;

20          Clauses (b) and (c) of the definition "eligible expenditure" in subsection 10.2.1(2) are amended by striking out "2016" and substituting "2019".

21(1)       Subsection 10.3(1) is amended by adding the following definitions:

"clean air emission equipment" means machinery or equipment, other than reconditioned or remanufactured machinery or equipment, that is designated in the regulations as clean air emission equipment. (« matériel de rejet d'air pur »)

"energy co-generation equipment" means machinery or equipment, other than reconditioned or remanufactured machinery or equipment, that is designated in the regulations as energy co-generation equipment. (« matériel de cogénération d'énergie »)

"gasification equipment" means machinery or equipment, other than reconditioned or remanufactured machinery or equipment, that is designated in the regulations as gasification equipment. (« matériel de gazéification »)

"government assistance", in relation to any equipment, means assistance from a government, municipality or other public authority — whether as a grant, subsidy, forgivable loan, deduction from tax, investment allowance or any other form of assistance — that has been deducted under subsection 13(7.1) or (7.4) of the federal Act in determining the taxpayer's capital cost of the equipment. (« aide gouvernementale »)

21(2)       Subsection 10.3(2) is amended

(a) by striking out "2019" and substituting "July 1, 2023"; and

(b) by striking out everything after "subsection (3):" and substituting the following:

tax credit = adjusted cost × 7.5%

In this formula, "adjusted cost" means an amount equal to 125% of the manufacturer's cost of manufacturing the heat pump.

21(3)       Subsection 10.3(2.1) is amended

(a) by striking out "2019" and substituting "July 1, 2023"; and

(b) by adding "and before July 1, 2023" after "in the taxation year".

21(4)       Clause 10.3(3)(c) is amended in the part before subclause (i) by striking out "2019" and substituting "July 1, 2023".

21(5)       Subsection 10.3(5) is replaced with the following:

Purchaser's green energy equipment tax credit

10.3(5)     An eligible taxpayer is deemed to have paid on account of his or her tax payable under this Act for a taxation year the total of all amounts each of which is an amount determined by one of the following formulas in respect of equipment purchased by the taxpayer and first used or made available for use by the taxpayer in the taxation year and before July 1, 2023:

1.  The following formula applies to geothermal energy equipment (other than a geothermal heat pump), solar thermal energy equipment, energy co-generation equipment, gasification equipment and clean air emission equipment:

tax credit = C × P

In this formula,

C   is the amount that would be the taxpayer's capital cost of the equipment if

(a) the equipment were depreciable property of the taxpayer,

(b) in determining its capital cost to the taxpayer, no amount were deducted in respect of any government assistance received or receivable by the taxpayer, and

(c) no amount were included in respect of the taxpayer's borrowing costs;

P   is

(a) 10% in the case of solar thermal energy equipment, or

(b) 15% in the case of any other equipment to which this formula applies.

2.  The following formula applies to a geothermal heat pump for which a manufacturer is eligible for a tax credit under subsection (2):

tax credit = purchase price × 7.5%

In this formula, "purchase price" means the purchase price paid or payable by the eligible taxpayer for the equipment.

21(6)       Subsection 10.3(6) is amended by striking out "clause (5)(b)" and substituting "subsection (5)".

21(7)       Subsection 10.3(7) is amended by striking out "or" at the end of clause (a), adding "or" at the end of clause (b) and adding the following after clause (b):

(c) that has purchased energy co-generation equipment for use by the partnership in heating or cooling with energy generated with that equipment in Manitoba;

21(8)       Subsection 10.3(9) is amended

(a) by adding the following after clause (b):

(b.1) designating machinery or equipment as energy co-generation equipment for the purpose of this section;

(b.2) designating machinery or equipment as gasification equipment for the purpose of this section;

(b.3) designating machinery or equipment as clean air emission equipment for the purpose of this section;

(b) by replacing subclause 10.3(9)(c)(ii) with the following:

(ii) a purchaser of geothermal energy equipment, solar thermal energy equipment, energy co-generation equipment, gasification equipment or clean air emission equipment,

22(1)       Subsection 10.4.1(1) is replaced with the following:

Printing tax credit

10.4.1(1)   Subject to subsection (2), an eligible printer is deemed to have paid on the printer's balance-due day for a taxation year, on account of the printer's tax payable under this Act for that year, such amount as is claimed by the printer but not exceeding the amount determined by the following formula:

tax credit = 35% × L × (R1/R2)

In this formula,

L   is the total of the amounts paid by the printer in that taxation year and before 2019 as salary or wages to its employees who were resident in Manitoba on December 31 of that taxation year in respect of their employment in the printer's book printing division;

R1is the printer's eligible printing revenue for the taxation year;

R2is the total book printing revenue, other than revenue from the printing of yearbooks, earned by the printer in that taxation year and before 2019.

22(2)       The definition "eligible printing revenue" in subsection 10.4.1(3) is amended

(a) in clause (a), by striking out "$30,000" and substituting "$200,000"; and

(b) in clause (b), by striking out "2016" wherever it occurs and substituting "2019".

23(1)       Subsection 10.5(4) is amended

(a) in clause (b) of the definition "government assistance", by adding ", section 7.3 (research and development tax credit)" after "this section";

(b) in the part of the definition "labour expense" before clause (a), by striking out "2017" and substituting "2020"; and

(c) in subclause (b)(ii) of the definition "marketing and distribution expense", by striking out "2017" and substituting "2020".

23(2)       Clause (b) of the definition "government assistance" in subsection 10.5(4) of the English version is further amended by striking out "co-op education and apprenticeship" and substituting "paid work experience".

23(3)       Subclause 10.5(5)(a)(vi) of the English version is amended by striking out "co-op education and apprenticeship" and substituting "paid work experience".

24          Clause (c) of the definition "rental housing project" in subsection 10.6(1) is amended by striking out "2017" and substituting "2020".

25(1)       Clause 11.8(2)(b) is replaced with the following:

(b) 45% of the amount, if any, by which

(i) the total of all amounts each of which is the cost to the individual, or to a qualifying trust for the individual, of an eligible investment acquired by the individual or the qualifying trust

(A) after June 11, 2014, and before 2021, and

(B) in the year or within the first 60 days after the end of the year,

exceeds

(ii) the total of all amounts each of which is the cost of an eligible investment referred to in subclause (i) that was included in computing the individual's tax credit under this section for the immediately preceding year.

25(2)       Subsection 11.8(4) is amended by striking out "the 60th day after the end of the year in which the investment was acquired by the individual or trust" and substituting "March 15 of the year following the year to which the tax credit relates".

PART 5

THE PROPERTY TAX AND INSULATION

ASSISTANCE ACT

C.C.S.M. c. P143 amended

26          The Property Tax and Insulation Assistance Act is amended by this Part.

27          Subsection 16.1(1) is amended by adding the following definition:

"tax due date", in relation to a property for a taxation year, means

(a) the day on which the municipal taxes for that property are due or would be due if they were not being paid under an instalment plan; or

(b) if the taxpayer is a lessee of the property who is required to reimburse the lessor for the municipal taxes paid by the lessor, the day on which the reimbursement is due. (« date d'échéance des taxes municipales »)

28(1)       Subsection 16.4(3) is replaced with the following:

When to apply

16.4(3)     A separate application for a rebate is required for each taxation year. It must be made after the property tax statement for the year is issued and on or before the latest of the following dates:

(a) March 31 of the following year;

(b) the 90th day after the property's tax due date;

(c) the 120th day after the date of the tax statement;

(d) any other date determined in accordance with the regulations.

28(2)       Subsection 16.4(4) is replaced with the following:

Transitional

16.4(4)     Despite subsection (3), if, for a taxation year before 2015,

(a) the tax statement for a property was sent to the taxpayer after the end of the year; or

(b) the property's tax due date for that year occurred after the end of the year;

an application for a rebate in respect of that property for that year may be made at any time before January 1, 2016.

29          Section 16.8 is amended by adding the following after clause (c.2):

(c.3) establishing an application deadline for the purpose of subsection 16.4(3);

30          The second condition in section 16.13 is replaced with the following:

2.  On the property's tax due date for that year,

(a) the individual or the individual's cohabiting spouse or common-law partner is

(i) one of the registered owners of the property, or

(ii) an occupier, as defined in The Municipal Assessment Act, to whom the property tax statement is addressed and who is liable, under that Act or a written agreement with the registered owner that satisfies the requirements prescribed by regulation, to pay the tax imposed in respect of the property; or

(b) the registered owner of the property is a family farm corporation, as defined in The Farm Lands Ownership Act, the shareholders of which include the individual or the individual's cohabiting spouse or common-law partner.

31(1)       Subsection 16.14(1) is replaced with the following:

Application for rebate

16.14(1)    To obtain a rebate in respect of a dwelling unit (referred to in this section as the "specified unit"), an application in a form approved by the minister must be submitted to the minister by an eligible individual in relation to the dwelling unit (referred to in this section as the "applicant") or by

(a) someone acting on behalf of the applicant under a power of attorney or committeeship; or

(b) in the case of a deceased individual's estate, the legal representative of that estate.

31(2)       Subsection 16.14(2) is replaced with the following:

When to apply

16.14(2)    A separate application is required for each calendar year. It must be made after the property tax statement for the year is issued and on or before the latest of the following dates:

(a) March 31 of the following year;

(b) the 90th day after the property's tax due date;

(c) any other date determined in accordance with the regulations.

32(1)       Clause 16.15(a) is replaced with the following:

(a) the following amount for the year in question:

(i) for 2014, $235,

(ii) for 2015, $470,

(iii) for 2016 or any later year, $2,300; and

32(2)       Subclause 16.15(b)(iii) is amended

(a) by adding "the lesser of $700 and" before "any education property tax credit"; and

(b) by striking out "if no rebate were paid in respect of the dwelling unit".

33          Section 16.19 is amended

(a) by adding the following after clause (b):

(b.1) respecting agreements between occupiers and registered owners for the purpose of section 16.13;

(b) by replacing clause (c) with the following:

(c) establishing an application deadline for the purpose of subsection 16.14(2);

PART 6

THE RETAIL SALES TAX ACT

C.C.S.M. c. R130 amended

34          The Retail Sales Tax Act is amended by this Part.

35(1)       The definition "closely related" in subsection 1(1) is replaced with the following:

"closely related" means

(a) in the case of two corporations, being related to each other as follows:

(i) one corporation controls the other corporation and owns shares in the capital stock of the other corporation having a fair market value that is not less than 95% of the fair market value of all the issued and outstanding shares of the other corporation, or

(ii) the same person or group of persons controls each corporation and owns shares in the capital stock of each corporation having a fair market value that is not less than 95% of the fair market value of all the issued and outstanding shares of that corporation,

and there exists no right or option that, if exercised, would result in any condition in subclause (i) or (ii), as the case may be, not being satisfied, and

(b) in the case of two partnerships, being related to each other as follows:

(i) one partnership controls the other partnership, and its interest in the other partnership entitles it to be allocated at least 95% of the income or loss of that other partnership and has a fair market value that is not less than 95% of the fair market value of all the interests in that other partnership, or

(ii) the same person or group of persons controls each partnership, and the interest of the person or group in each partnership entitles it to be allocated at least 95% of the income or loss of that partnership and has a fair market value that is not less than 95% of the fair market value of all the interests in that partnership,

and there exists no right or option that, if exercised, would result in any condition in subclause (i) or (ii), as the case may be, not being satisfied; (« étroitement liées »)

35(2)       Subsection 1(1) is further amended

(a) in the definition "multijurisdictional vehicle", by striking out "in respect of which tax is payable under subsection 2.3(2)" and substituting "the registration of which in Manitoba or another jurisdiction is a registration to which the International Registration Plan applies";

(b) in the definition "RST number", by striking out "assigned under this Act" and substituting "issued or assigned to a person for the purposes of this Act and The Tax Administration and Miscellaneous Taxes Act";

(c) in clause (c) of the definition "tangible personal property", by adding "vacuum," after "cooling,"; and

(d) by adding the following definition:

"common-law partner" of a person means another person

(a) with whom the person has a common-law relationship registered under section 13.1 of The Vital Statistics Act, or

(b) who, not being married to the person, is cohabiting with him or her in a conjugal relationship and has so cohabited with him or her

(i) for a period of at least three years, or

(ii) for a period of at least one year, if they are together the parents of a child; (« conjoint de fait »)

35(3)       Subsection 1(1.3) is repealed.

36          The part of subsection 2(2) before clause (a) is amended by striking out "If" and substituting "Subject to section 2.2, if".

37(1)       Subsection 2.2(1) is amended

(a) in clause (b) of the definition "average wholesale price", by striking out "the purchase price of the vehicle" and substituting "the average wholesale price for such a vehicle as estimated by the director"; and

(b) in clause (b) of the definition "current resale value", by striking out "the purchase price of the vehicle" and substituting "the current resale value for such a vehicle as estimated by the director".

37(2)       Subsection 2.2(5) is amended

(a) in the part before clause (a), by striking out "For" and substituting "Subject to subsection (5.1), for";

(b) in the part of clause (a) before subclause (i), by striking out "unless it" and substituting "unless the purchase price is nil or the vehicle"; and

(c) in the part of clause (b) before subclause (i), by striking out "unless it" and substituting "unless the purchase price is nil or the vehicle".

37(3)       The following is added after subsection 2.2(5):

Trade-ins

2.2(5.1)    Subsection (5) does not apply to the purchase or other acquisition of a motor vehicle or off-road vehicle to which subsection 2(9) applies.

38(1)       Subsection 2.3(1) is amended

(a) by repealing the definition "reciprocal jurisdiction"; and

(b) by replacing the definition "vehicle taxable value" with the following:

"vehicle taxable value", in relation to a vehicle, means the greater of

(a) its purchase price as set out in the purchase or lease agreement, and

(b) its fair market value on its acquisition date as determined by the director,

and includes any capital expenditure made to the vehicle after its acquisition date. (« valeur imposable du véhicule »)

38(2)       Subsection 2.3(2) is replaced with the following:

Tax payable on multijurisdictional vehicle

2.3(2)      A person who registers a multijurisdictional vehicle, as part of a fleet or otherwise, must pay tax in accordance with this section for the vehicle registration year

(a) when registering the vehicle; or

(b) if the vehicle is registered outside of Manitoba and the tax is not paid at the time of registration, when the vehicle first enters Manitoba in that year.

38(3)       Subsection 2.3(3) is repealed.

39(1)       Clause 3(1)(c.1) is replaced with the following:

(c.1) tampons, sanitary napkins, menstrual cups and other similar feminine hygiene products;

39(2)       Clause 3(1)(e.2) is replaced with the following:

(e.2) the following forms of nicotine replacement therapy products designed to assist a person to quit smoking:

(i) patches,

(ii) gum,

(iii) lozenges,

(iv) sprays;

39(3)       Clause 3(1)(h) is amended by striking out "blind or physically disabled persons or chronic invalids" and substituting "disabled persons".

39(4)       Clause 3(1)(p) is amended by adding "and repair parts for such boats, nets or other apparatus," after "used for commercial fishing,".

39(5)       The following is added after clause 3(1)(w.4):

(w.5) the following items when purchased for use in processing a product for sale:

(i) flour milling rollers,

(ii) screens;

39(6)       The following is added after subclause 3(1)(jj)(ii):

(iii) sandbag filling machines,

(iv) polyethylene membranes;

39(7)       Clause 3(1)(xx.1) is amended

(a) in subclause (xii), by adding "tarps" after "polyethylene"; and

(b) by adding the following after subclause (xii):

(xiii) drill bits for cutting holes to insert explosives in ore that is extracted for further processing,

(xiv) explosives and explosive accessories for breaking ore that is extracted for further processing;

39(8)       Subsection 3(18.3.1) is amended by renumbering clause (a) as (a.1) and adding the following as clause (a):

(a) the property is transferred to the corporation before it commences carrying on business;

39(9)       The following is added after subsection 3(18.3.1):

Transfer to spouse or common-law partner

3(18.3.2)   For the purposes of clauses (18.1)(b), (18.2)(b), (18.3)(b) and (18.3.1)(a.1), if a share or partnership interest is transferred by a person to his or her spouse or common-law partner,

(a) the share or partnership interest is deemed to remain the property of, and to be owned by, the transferor for as long as it is continues to be the property of the spouse or common-law partner; and

(b) any return of capital paid on the share or partnership interest while it is the property of the spouse or common-law partner is deemed to have been paid to the transferor.

39(10)      The part of subsection 3(18.4) before clause (a) is amended by striking out "who did not acquire any shares of the corporation in contemplation of the transfer".

39(11)      The part of subsection 3(18.5) before clause (a) is amended by striking out "who did not acquire any interest in the partnership in contemplation of the transfer".

39(12)      Subsection 3(26) is amended by striking out "or" at the end of clause (a), adding "or" at the end of clause (b) and adding the following after clause (b):

(c) by making it available on the Internet.

40(1)       Clause 9(2)(a) is amended by adding "(other than the tax payable in accordance with section 2.2 when the vendor is not a vehicle dealer as defined in that section)" after "section 2".

40(2)       Subsection 9(2.3) is amended by striking out "and" at the end of clause (a), adding "and" at the end of clause (b) and adding the following after clause (b):

(c) the person does not sell tobacco or liquor products.

41(1)       The part of subsection 26(8) before clause (a) is amended by adding ", otherwise than by way of a transfer to an insurer as part of the settlement of an insurance claim," after "sells an off-road vehicle".

41(2)       The part of subsection 26(9) before clause (a) is amended by adding ", otherwise than by way of a transfer to an insurer as part of the settlement of an insurance claim," after "sells an aircraft".

41(3)       Clause 26(15)(a) is amended by striking out "30 days" and substituting "60 days".

PART 7

THE TAX ADMINISTRATION AND MISCELLANEOUS TAXES ACT

C.C.S.M. c. T2 amended

42          The Tax Administration and Miscellaneous Taxes Act is amended by this Part.

43          The following is added after subsection 10(1.1):

Order to apply for tax authorization

10(1.1.1)   The director may issue an order requiring a person who requires a tax authorization to apply for that authorization within 30 days after receiving the order.

Director may assign RST number without application

10(1.1.2)   If a person who has been ordered to apply for an RST number under The Retail Sales Tax Act fails to apply for it as ordered, the director may assign an RST number to the person without an application.

44(1)       Subsection 12(3) of the English version is amended by striking out "cash" and substituting "money".

44(2)       The following is added after subsection 12(3):

No interest on deposit

12(4)       No interest is payable by the government on money accepted by the director as security under this section.

Default

12(5)       To the extent of the amount in default under any obligation to pay or remit tax when it is due plus any interest or penalty payable on the amount in default, any money deposited with the government as security for that obligation becomes the property of the government when the default occurs.

45(1)       Subsection 14(4) of the English version is amended by striking out "cash" and substituting "money".

45(2)       The following is added after subsection 14(4):

Money on deposit as security

14(4.1)     Subsections 12(4) and (5) apply with necessary changes to money accepted by the director as security under this section.

46(1)       The part of subsection 67(2) before clause (a) is amended by striking out "The tax" and substituting "Subject to subsection (4), the tax".

46(2)       The following is added after subsection 67(3):

Duration of warrant

67(4)       Despite section 2.1 of The Executions Act, a tax debt warrant continues in full force and effect, with respect to property seized within two years after it is issued, until all actions to be taken under it have been taken or until it is withdrawn by the director, whichever is earlier.

47(1)       Subsection 75(2) is amended by striking out "or" at the end of clause (d), adding "or" at the end of clause (e) and adding the following after clause (e):

(f) not being the holder of a valid tax authorization, does anything to lead or attempt to lead another person to believe that he or she holds a valid tax authorization.

47(2)       Clause 75(3)(a) is replaced with the following:

(a) subsection 10(1.1.1) (apply for tax authorization) or (3.1) (stop order);

48          Subsection 83(2) is amended

(a) in clause (a), by striking out "75(1)(c)" and substituting "75(1)(d)"; and

(b) in clause (b), by striking out "75(1)(d)" and substituting "75(1)(e)".

PART 8

THE TOBACCO TAX ACT

C.C.S.M. c. T80 amended

49          Subsection 2(1) of The Tobacco Tax Act is amended

(a) in clause (a), by striking out "29¢" and substituting "29.5¢";

(b) in clause (c), by striking out "26.5¢" and substituting "27¢"; and

(c) in clause (d), by striking out "28¢" and substituting "28.5¢".

PART 9

MISCELLANEOUS AMENDMENTS

THE MANITOBA ASSISTANCE ACT

C.C.S.M. c. A150 amended

50(1)       The Manitoba Assistance Act is amended by this section.

50(2)       Subclause 5.3.1(1)(c)(ii) is amended by striking out "prescribed accommodations" and substituting "eligible rental accommodations".

50(3)       The following is added after subsection 5.3.1(2):

Maximum shelter assistance — 75% of median market rent

5.3.1(3)    The maximum set out in the regulations for shelter assistance payable to a person who resides in eligible rental accommodations must be at least 75% of the median market rent in relation to that person's household. Median market rent is to be determined annually in accordance with the regulations.

Definition — eligible rental accommodation

5.3.1(4)    In this section, "eligible rental accommodations" means eligible rental accommodations as defined in the regulations.

50(4)       Clause 19(1)(e.1) is amended by striking out "and determine the amount of shelter assistance to be provided to an eligible person" and substituting ", determine the amount of shelter assistance to be provided to an eligible person, define "eligible rental accommodations" and establish a method for determining median market rent".

THE FINANCIAL ADMINISTRATION ACT

C.C.S.M. c. F55 amended

51          Section 80 of The Financial Administration Act is replaced with the following:

Disclosure of contracts

80(1)       The Minister of Finance must publish, for each reporting period prescribed by regulation, reports that set out the following information about contracts described in subsection (2):

(a) the names of the parties to the contract;

(b) a description of the subject matter and type of contract, as prescribed by regulation;

(c) the amount of the contract or, if it is not for a fixed amount, an estimate of the anticipated total expenditure and a description of the basis on which payment is to be made;

(d) any other information prescribed by regulation.

Contracts to be reported

80(2)       Subject to the regulations, subsection (1) applies to every contract that

(a) is for the procurement of goods or services, or both goods and services, by or on behalf of the government;

(b) requires an expenditure of money from the Consolidated Fund; and

(c) has not been included in a report for a prior reporting period.

Regulations

80(3)       The Lieutenant Governor in Council may make regulations respecting the reporting of contracts under this section including

(a) prescribing the reporting period, any additional information to be included in the reports and the time and manner in which the reports are to be published;

(b) establishing contract categories and authorizing or requiring reports under this section to include summary information for each category;

(c) exempting contracts from the reporting requirement, including an exemption for contracts for which the total expenditure from the Consolidated Fund will be less than the amount specified in the regulations;

(d) establishing reporting procedures and requirements for government departments to report to the Minister of Finance;

(e) respecting any other matter necessary or advisable to carry out the purpose of this section.

THE SPECIAL OPERATING AGENCIES FINANCING AUTHORITY ACT

C.C.S.M. c. S185 amended

52(1)       The Special Operating Agencies Financing Authority Act is amended by this section.

52(2)       Subsection 6(1) is amended by striking out "Lieutenant Governor in Council" and substituting "Minister of Finance".

52(3)       Sections 11 and 12 are replaced with the following:

Designation of special operating agencies

11          The Lieutenant Governor in Council may, by regulation, designate one or more departments, divisions, branches or programs of the government as a special operating agency.

Operating charter required

12(1)       For each agency, the Minister of Finance must establish an operating charter that will govern the operations of the agency.

Amendment of operating charter

12(2)       The Minister of Finance may amend or replace an operating charter from time to time.

52(4)       Section 13 is amended

(a) in the part before clause (a), by striking out "Lieutenant Governor in Council" and substituting "Minister of Finance"; and

(b) in clause (b), by adding "responsible" before "minister".

52(5)       The following is added after section 13:

Annual review of operating charters and management agreements

13.1        At least once a year, an agency must review its operating charter and management agreement and provide a report to the Financing Authority identifying any amendment the agency considers necessary or appropriate.

52(6)       Section 15 is replaced with the following:

Revoking designation

15          The Lieutenant Governor in Council may, on any terms it considers appropriate, revoke the designation of an agency. Upon the revocation, the agency ceases to be a special operating agency and ceases to be subject to this Act.

52(7)       Section 22 is replaced with the following:

Audits

22          An agency's financial records and accounts must be audited annually by the Auditor General or any other auditor appointed by the Lieutenant Governor in Council, and the cost of the audit is to be paid by the agency.

52(8)       Section 23 is repealed.

52(9)       Subsection 24(1) of the English version is amended by striking out "close" and substituting "end".

PART 10

COMING INTO FORCE

Coming into force

53(1)       Except as otherwise provided in this section, this Act comes into force on the day it receives royal assent.

Part 1: The Corporation Capital Tax Act

53(2)       Section 1 is deemed to have come into force on April 30, 2015, and applies to fiscal years ending on or after that day.

Part 2: The Fuel Tax Act

53(3)       Section 4 comes into force on July 1, 2015, and, if this Act receives royal assent after that day, it is deemed to have come into force on that day.

Part 4: The Income Tax Act

53(4)       Clauses 7(a) and 8(a) and (c) come into force on January 1, 2016.

53(5)       Clause 7(b) comes into force on September 1, 2015.

53(6)       Clause 8(b) is deemed to have come into force on June 5, 2008.

53(7)       Section 9 is deemed to have come into force on January 1, 2015, and applies to taxation years ending on or after that day.

53(8)       Sections 10, 11 and 18 are deemed to have come into force on January 1, 2014.

53(9)       Section 12 is deemed to have come into force on January 1, 2015.

53(10)       The following provisions come into force on September 1, 2015:

(a) subsections 16(1) and 19(1);

(b) subsection 19(2) other than subclause (d)(i) and clause (e); and

(c) subsections 19(3) to (5), (10) and (11).

53(11)      Subsections 19(6) to (9) come into force on January 1, 2016, and apply to taxation years ending on or after that day.

53(12)      Subsection 22(1) is deemed to have come into force on January 1, 2015, and applies to taxation years ending on or after that day.

53(13)      Clause 22(2)(a) is deemed to have come into force on March 6, 2014.

53(14)      Subsections 23(2) and (3) come into force on September 1, 2015.

53(15)      Subsection 25(2) is deemed to have come into force on January 1, 2015.

Part 5: The Property Tax and Insulation Assistance Act

53(16)      Subsection 31(2) is deemed to have come into force on March 31, 2015.

53(17)      Subsection 32(1) is deemed to have come into force on January 1, 2015.

53(18)      Subsection 32(2) is deemed to have come into force on January 1, 2014.

Part 6: The Retail Sales Tax Act

53(19)      Clause 35(2)(b) is deemed to have come into force on January 1, 2013.

53(20)      Subsections 39(3), (4), (6) and (12) are deemed to have come into force on June 1, 2015.

53(21)      Subsections 41(1) and (2) are deemed to have come into force on June 12, 2014.

Part 8: The Tobacco Tax Act

53(22)      Section 49 is deemed to have come into force on May 1, 2015.

Part 9: Miscellaneous amendments

53(23)      Section 50 comes into force on December 1, 2015.

Explanatory Note

This Bill implements measures in the 2015 Manitoba Budget and makes various other amendments to tax legislation.

Budget Measures

The budget measures implemented by this Bill include the following:

Corporation Capital Tax (Part 1)

  • increasing the corporation capital tax on financial institutions from 5% to 6% (s. 1)

Fuel Tax (Part 2)

  • providing a tax rebate on aviation fuel purchased for an international commercial passenger flight (s. 4)

Income Tax (Part 4)

  • providing a $324 tax credit to volunteer firefighters and search and rescue volunteers (s. 9)
  • increasing the primary caregiver tax credit from $1,275 to $1,400 (s. 12)
  • increasing the small business income limit eligible for the small business deduction from $425,000 to $450,000 effective January 1, 2016 (s. 13)
  • increasing the period during which research and development tax credits may be carried forward from 10 years to 20 years (s. 15)
  • extending the film and video production tax credit by three years to December 31, 2019 (s. 16(2) and 17)
  • extending the data processing investment tax credit by three years to December 31, 2018, and enhancing the credit as follows:
    • by providing a credit to the owner of a new data processing centre who leases it at arm's length to another Manitoba corporation
    • by allowing the credit that would have been earned by a partnership, if it were an eligible corporation, to be allocated to a partner or partners (s. 18)
  • renaming the co-op education and apprenticeship tax credit as the "paid work experience tax credit" and changing it as follows:
    • adding a new youth work experience hiring incentive (up to $5,000 per student per year at the rate of 25% of salary and wages) for hiring high school students and those recently out of school who completed an approved youth work experience training program in high school
    • increasing from 15% to 25% the rate at which the apprenticeship hiring incentive is earned for hiring a high school apprentice
    • increasing from 10% to 15% the rate at which the co-op student hiring incentive is earned, and changing the maximum from $1,000 per work placement to $5,000 per student
    • increasing from 5% to 15% the rate at which the co–op graduate hiring incentive is earned (s. 19)
  • extending the nutrient management tax credit by three years to December 31, 2018 (s. 20)
  • expanding the green energy equipment tax credit by providing a 15% credit for energy co-generation equipment and gasification equipment to be designated by regulation and extending the credit to June 30, 2023 (s. 21)
  • extending the cultural industries printing tax credit by three years to December 31, 2018 (s. 22)
  • extending the interactive digital media tax credit by three years to December 31, 2019, and clarifying that the credit is not reduced by a research and development tax credit (s. 23)
  • extending the rental housing construction tax credit by three years to December 31, 2019 (s. 24)
  • allowing an eligible investment made by an individual directly or through an RRSP or TFSA within the first 60 days of the year to qualify for a community enterprise development tax credit for the previous taxation year (s. 25)

Seniors' School Tax Rebate (Part 5)

  • extending the rebate to a senior who is not the registered owner but is an occupier who is liable to pay the school taxes (s. 30 and 33(a))
  • allowing a legal representative to apply for the rebate on a senior's behalf (s. 31)
  • increasing the maximum rebate from $235 to $470 for 2015 and to $2,300 for 2016 and later years (s. 32)

Retail Sales Tax (Part 6)

  • clarifying that the exemption for goods for disabled persons applies to persons with physical or mental disabilities (s. 39(3))
  • expanding the exemption for commercial fishing boats to include repair parts (s. 39(4))
  • expanding the exemption for flood prevention and control supplies to include sandbag filling machines and polyethylene membranes (s. 39(6))
  • expanding the exemption for film and audio productions to include productions made available on the Internet (s. 39(12))

Tax Administration and Enforcement (Part 7)

  • authorizing the director to require a person to apply for a tax authorization and to assign an RST number to a person who fails to apply for it (s. 43)
  • specifying that no interest is payable on money deposited as security for the obligation to remit tax, and clarifying that, to the extent of any amount in default, such a deposit becomes property of the government (s. 44 and 45)
  • extending the time that a tax debt warrant remains in effect so that property seized under it within two years may be dealt with according to law (s. 46)
  • making it an offence to mislead someone into believing that one holds a valid tax authorization or to fail to comply with an order to apply for a tax authorization (s. 47)

Tobacco Tax (Part 8)

  • increasing the tax rates on tobacco effective May 1, 2015:
    • from 29¢ to 29.5¢ per cigarette
    • from 28¢ to 28.5¢ per gram for fine cut tobacco
    • from 26.5¢ to 27¢ per gram for raw leaf tobacco (s. 49)

    Manitoba Rent Assist

  • amendments to The Manitoba Assistance Act to require the maximum shelter assistance payable to participants to be at least 75% of median market rent (s. 50)

Financial Administration

  • an amendment to The Financial Administration Act that requires the Minister of Finance to report periodically on contracts that are entered into by or on behalf of the government for the procurement of goods or services and that require the expenditure of money from the Consolidated Fund (s. 51)
  • administrative amendments to The Special Operating Agencies Financing Authority Act that
    • authorize the Minister of Finance to establish and change operating charters and approve management agreements for special operating agencies
    • require special operating agencies to review their operating charter and management agreement annually and advise the Special Operating Agencies Financing Authority (the "Authority") of any necessary or appropriate changes
    • allow the Lieutenant Governor in Council to revoke the designation of a special operating agency without a recommendation by the Minister of Finance
    • eliminate the requirement for the annual audit and report of the Authority (which has no revenue, expenses or assets separate from the agencies) but not the requirement that annual audits be prepared and tabled for each special operating agency (s. 52)

    Other Amendments

Other amendments to tax legislation include the following:

  • amending The Fuel Tax Act to clarify the exemption for fuel used in off-road mining operations (s. 3)
  • amending The Health and Post Secondary Education Tax Levy Act to clarify the exclusion of remuneration paid to an employee operating a commercial truck outside of Manitoba (s. 5)
  • various amendments to The Income Tax Act, including amendments
    • to ensure that the top bracket tax rate applies to all trusts to which s. 122 of the federal Act applies (s. 7(a) and 8)
    • to ensure that a senior's school tax rebate does not reduce the portion of the senior's education property tax credit above the basic education property tax credit or the senior's school tax credit (s. 10 and 11)
    • to clarify the treatment of government assistance in the calculation of certain tax credits (s. 14 and 21)
    • to remove the requirement for a certificate of approval for a cooperative education program for the purpose of the co-op student hiring incentive (s. 19(2) and (11))
    • to extend the green energy equipment tax credit to June 30, 2023, and extend the credit to equipment designated in the regulations as clean air emission equipment (s. 21)
    • to change the formula for calculating the cultural industries printing tax credit so that it is based on labour costs instead of revenue (s. 22)
  • amendments to The Property Tax and Insulation Assistance Act to extend the deadline for applying for the farmland school tax rebate or the seniors' school tax rebate in circumstances where the tax statement is issued late or the tax due date is deferred (s. 27 to 29, 31(2) and 33(b))
  • various amendments to The Retail Sales Tax Act, including amendments
    • to clarify the meaning of "closely related" and "tangible personal property" (s. 35(1) and (2)(c))
    • to clarify the amount on which tax is payable when a used vehicle is purchased from someone other than a vehicle dealer (s. 36 and 37)
    • to clarify when tax is payable in respect of a multijurisdictional vehicle (s. 38)
    • to clarify the exemption for nicotine replacement therapy products (s. 39(2))
    • to add an exemption for flour milling rollers and screens when purchased for use in processing a product for sale (s. 39(5))
    • to broaden the exemption for products used in mining or processing minerals for sale as a mineral product so that it includes certain drill bits and explosives (s. 39(7))
    • to streamline and clarify the rules for tax-exempt transfers of property between closely related corporations and partnerships and transfers to shareholders and partners (s. 39(8), (10) and (11))
    • to allow a share or partnership interest to be transferred to a spouse or common-law partner during the holding period that applies in relation to certain tax-exempt transfers of property between closely related parties (s. 39(9))
    • to clarify that a vendor who is not a vehicle dealer is not required to collect the tax payable on a sale of a used vehicle (s. 40(1))
    • to require a vendor who sells tobacco or liquor products to collect retail sales tax even if the total annual taxable retail sales are less than $10,000 (s. 40(2))
    • to clarify that tax is not refundable in respect of an off-road vehicle or aircraft transferred to an insurer in connection with an insurance claim (s. 41)