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The Manitoba Building and Renewal Funding and Fiscal Management Act (Various Acts Amended)

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S.M. 2013, c. 36

Bill 20, 3rd Session, 40th Legislature

The Manitoba Building and Renewal Funding and Fiscal Management Act (Various Acts Amended)

(Assented to December 5, 2013)

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

PART 1

FUNDING FOR MANITOBA BUILDING AND RENEWAL

Exemption from referendum requirement

1           Section 10 of The Balanced Budget, Fiscal Management and Taxpayer Accountability Act does not apply in respect of the increases enacted by section 2 of this Act in the rates of tax under The Retail Sales Tax Act.

The Retail Sales Tax Act

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

2(1)        The Retail Sales Tax Act is amended by this section.

2(2)        Subsection 1(1) is amended by adding the following definitions:

"general sales tax rate" means

(a) if the tax becomes payable before or after the infrastructure funding period, 7%, and

(b) if the tax becomes payable during the infrastructure funding period, 8%; (« taux général de taxe de vente »)

"infrastructure funding period" means the 10-year period beginning July 1, 2013, and ending June 30, 2023; (« période de financement des infrastructures »)

2(3)        Subsection 2(1) is amended by striking out everything after "must pay tax" and substituting "equal to the fair value of the property or service multiplied by the general sales tax rate.".

2(4)        Clauses 2(1.1)(a) and (b) are replaced with the following:

(a) the fair value of the home, excluding the fair value of any appliances, free-standing furniture or draperies purchased with the home multiplied by

(i) 4%, if the tax becomes payable before or after the infrastructure funding period, or

(ii) 4.5%, if the tax becomes payable during the infrastructure funding period; and

(b) the fair value of any appliances, free-standing furniture or draperies purchased with the home multiplied by the general sales tax rate.

2(5)        Subsections 2(1.4) and (1.7) are amended, in the part of each subsection before clause (a), by striking out "the tax payable on the purchase of electricity is computed at the reduced rate of 1.4% of its fair value" and substituting "the tax rate applicable to the purchase of electricity is reduced to 20% of the general sales tax rate".

2(6)        Subclause 2(5.1)(b)(i) is replaced with the following:

(i) 1/36th of the vendor's purchase price of the tangible personal property multiplied by the general sales tax rate, and

2(7)        Clauses 2(5.3.1)(b) and (c) are amended

(a) in the part before subclause (i), by adding "the following amount multiplied by the general sales tax rate:" after "equal to"; and

(b) in subclauses (i) and (ii), by striking out "7% of".

2(8)        Subsection 2(5.4) is amended

(a) in the formula, by striking out "7%" and substituting "R"; and

(b) by adding the following description of R after "In this formula,":

R

is the general sales tax rate;

2(9)        The part of clause 2(5.7)(b) before the formula is replaced with the following:

(b) pay tax, for each calendar month in which the aircraft is temporarily used or situated in Manitoba, equal to the taxable value determined by the following formula multiplied by the general sales tax rate:

2(10)       Clause 2.2(9)(c) is replaced with the following:

(c) the sale price of the sold vehicle multiplied by the general sales tax rate;

2(11)       The following is added after subsection 2.3(5):

Tax rate during infrastructure funding period

2.3(5.1)    Despite subsection (5), if the tax payable under subsection (2) becomes payable within the infrastructure funding period, the rate of tax that would otherwise apply under subsection (5) is to be determined according to the following table:

Calendar Year Tax Rate For Vehicle other than a Bus Tax Rate For Bus
the acquisition year 3.765% 2.353%
the calendar year following the acquisition year 3.024% 1.890%
the second calendar year following the acquisition year 2.488% 1.554%
the third calendar year following the acquisition year 2.101% 1.312%
the fourth calendar year following the acquisition year 1.825% 1.141%
the fifth calendar year following the acquisition year 1.802% 1.126%
the sixth calendar year following the acquisition year 1.725% 1.078%
the seventh calendar year following the acquisition year 1.698% 1.061%
the eighth calendar year following the acquisition year 1.711% 1.069%
the ninth and subsequent calendar years following the acquisition year 1.752% 1.095%

2(12)       Clause 2.3(13)(a) is replaced with the following:

(a) the owner or lessee shall, on registration or in accordance with subsection 2(4) without delay after the vehicle ceases to be used for interjurisdictional commercial purposes, pay tax equal to the total of the following amounts multiplied by the general sales tax rate:

(i) the depreciated value of the vehicle or trailer determined in accordance with the regulations,

(ii) the fair value of repair parts that are prescribed in the regulations and that are purchased for use in, but have not been installed in, the vehicle or trailer; and

2(13)       Subsection 4.1(1) is amended in the part before clause (a) by striking out "at the rate of 7% of the premiums payable under the contract" and substituting "equal to the premiums payable under the contract multiplied by the general sales tax rate".

2(14)       Subsection 4.1(2) is amended in the part before clause (a) by striking out "at the rate of 7% of the premiums payable by the person" and substituting "equal to the premiums payable by the person multiplied by the general sales tax rate".

2(15)       Subsection 4.1(11) is amended by striking out "at the rate of 7% of" and substituting ", at the general sales tax rate, on".

2(16)       Clause 26(4)(b) is replaced with the following:

(b) the sale price of the motor vehicle sold multiplied by the general sales tax rate.

2(17)       Clause 26(8)(b) is replaced with the following:

(b) the sale price of the vehicle sold multiplied by the general sales tax rate.

2(18)       Clause 26(9)(b) is replaced with the following:

(b) the sale price of the aircraft sold multiplied by the general sales tax rate.

The Financial Administration Act

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

3           The Financial Administration Act is amended by adding the following:

Manitoba Building and Renewal Plan — report on infrastructure funding and expenditures

67.3(1)     Within six months after the end of each fiscal year beginning after 2012, the Minister of Finance must prepare a report that sets out

(a) as infrastructure funding revenue,

(i) the amount reported under section 67.1 as the fuel tax revenue for the fiscal year, and

(ii) an amount equal to the following percentage of the government's revenue under The Retail Sales Tax Act for the fiscal year:

(A) 22.32% for the 2013-2014 fiscal year,

(B) 25% for each fiscal year after that throughout which the general sales tax rate under that Act is 8%;

(b) as infrastructure expenditures,

(i) the amount reported under section 67.1 as the fuel tax expenditure for the fiscal year,

(ii) the total of the amounts paid for the fiscal year out of the Building Manitoba Fund under The Municipal Taxation and Funding Act, and

(iii) the total of all other amounts paid by the government for the fiscal year to reporting organizations or other organizations in support of infrastructure that provides a public benefit and for expenses incurred in support of the government's infrastructure; and

(c) the amount, if any, by which the infrastructure funding revenue for the fiscal year and all previous fiscal years beginning after 2012 exceeds, or falls short of, the infrastructure expenditures for those years.

Report to be tabled

67.3(2)     The Minister of Finance must table the report in the Legislative Assembly along with his or her report under section 67.

Report to be included in public accounts

67.3(3)     The report referred to in subsection (1) must be included in the public accounts each fiscal year.

Excess infrastructure funding revenue

67.3(4)     If an amount is reported under clause (1)(c) as excess infrastructure funding revenue, the government's estimates of expenditure for the next four fiscal years must include infrastructure expenditures referred to in clause (1)(b) that exceed, in total, its estimated infrastructure funding revenue for those years by the same amount.

PART 2

FISCAL MANAGEMENT

The Balanced Budget, Fiscal Management and Taxpayer Accountability Act

C.S.S.M. c. B5 amended

4(1)        The Balanced Budget, Fiscal Management and Taxpayer Accountability Act is amended by this section.

4(2)        Subsection 3(1) is amended by adding ", (2.1)" after "subsection (2)".

4(3)        The following is added after subsection 3(2):

Adjustment in determining balance

3(2.1)      For the purpose of subsection (1), the net income or loss for a fiscal year may be adjusted by adding an amount not exceeding the total of the following amounts:

(a) the amount, if any, by which the net income of Manitoba Hydro, The Manitoba Public Insurance Corporation, Manitoba Liquor and Lotteries Corporation (or its predecessors) and The Workers Compensation Board for the fiscal year, in total, falls more than 5% below the average net income of those agencies for the three immediately preceding fiscal years as reported in the public accounts;

(b) the amount, if any, required to bring the per capita level of the major federal transfers (Canada Health Transfer, Canada Social Transfer, Total Transfer Protection and equalization payments) for the fiscal year up to $2,623.

For the purpose of clause (b), the per capita level of major federal transfers is to be determined using Manitoba's estimated population as at July 1 of the fiscal year in question.

4(4)        Clause 4(1)(b) is amended by adding ", (2.1)" after "subsection 3(2)".

4(5)        The heading for Part 4.1 is replaced with "FISCAL MANAGEMENT DURING ECONOMIC RECOVERY PERIOD".

4(6)        Clause (a) of the definition "economic recovery period" in section 16.2 is amended by striking out "2014" and substituting "2016".

PART 3

COMING INTO FORCE

Coming into force — section 1

5(1)        Section 1 is deemed to have come into force on April 16, 2013.

Coming into force — section 2

5(2)        Section 2 is deemed to have come into force on April 17, 2013.

Coming into force — sections 3 and 4

5(3)        Sections 3 and 4 come into force on the day this Act receives royal assent.