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The Budget Implementation and Tax Statutes Amendment Act

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S.M. 2016, c. 10

Bill 11, 1 st Session, 41st Legislature

The Budget Implementation and Tax Statutes Amendment Act

(Assented to June 30, 2016)

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

PART 1

THE HEALTH AND POST SECONDARY EDUCATION TAX LEVY ACT

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

1           The Health and Post Secondary Education Tax Levy Act is amended by this Part.

2(1)        Subsection 2(3) is amended by striking out "after 1992".

2(2)        The part of subsection 2(4) before clause (a) is amended

(a) by striking out "after 1992,"; and

(b) in the English version, by striking out "partners" and substituting "partners,".

2(3)        Subsection 2(4.1) is amended by striking out ", after 1992,".

3(1)        Subsection 3(3.1.1) is amended

(a) in the section heading, by striking out "after 1998"; and

(b) in the part before clause (a), by striking out "ending in a year after 1998".

3(2)        The part of subsection 3(3.10) before clause (a) is amended by striking out "Subject to subsection (3.10.1), where" and substituting "Where".

3(3)        Subsection 3(3.10.1) is repealed.

3(4)        Subsections 3(3.12) and (3.14) are replaced with the following:

Exemption

3(3.12)     No tax is payable by an employer under subsection (3.1.1) for a year if the total remuneration paid by the employer for the year is $1,250,000 or less.

Notch provision

3(3.14)     If the total remuneration paid by an employer for a year is more than $1,250,000 and not more than $2,500,000, the tax payable by the employer under subsection (3.1.1) is 4.3% of the amount by which that total remuneration exceeds $1,250,000.

3(5)        The part of subsection 3(3.15) before clause (a) is amended by striking out "after 2001".

3(6)        The following is added after subsection 3(3.15):

Proration of exemption and notch provision (corporation ceasing to be associated)

3(3.16)     If a corporation that is associated with another corporation at the beginning of a year ceases, because of a change in control, to be associated with that corporation in that year and, for the remainder of the year, is not associated with any corporation, the director may, on application by the corporation, apply the following rules in determining the tax payable for the year by the corporation and any corporation that was associated with it in the year:

(a) notwithstanding subsection 2(3) and subsection (3.12), no tax is payable by the corporation in respect of remuneration paid to its employees in the portion of that year (the "post-association period") after the date it ceased to be associated with the other corporation if the total remuneration paid in the post-association period does not exceed the prorated amount of tax exemption determined in accordance with the following formula:

A = $1,250,000 × B/C

where

A

is the prorated amount of tax exemption;

B

is the total number of days in the post-association period;

C

is the total number of days in that year;

(b) notwithstanding subsection (3.12), the total amount of tax exemption to be shared under subsection 2(3) for the portion of the year before the post-association period (the "association period") by the corporation and all the corporations associated with it during that period is equal to $1,250,000 minus the prorated amount determined under clause (a);

(c) notwithstanding subsection (3.12), if the other corporation is associated with any other corporation in the post-association period, the total amount of tax exemption to be shared under subsection 2(3) for the post-association period by it and all corporations associated with it (the "associated group") in that period is the prorated amount determined under clause (a);

(d) notwithstanding subsection (3.14), if the total remuneration paid by the corporation for the post-association period is more than the prorated amount of tax exemption determined under clause (a) but not more than twice that amount, the tax payable under subsection (3.1.1) by the corporation for the post-association period is 4.3% of the amount of remuneration paid for the post-association period in excess of the prorated amount;

(e) notwithstanding subsection (3.14), if the total remuneration paid for the post-association period by the associated group is more than the prorated amount determined in clause (a) but not more than twice that amount, the tax payable under subsection (3.1.1) by the associated group for the post-association period is 4.3% of the amount of remuneration paid for the post-association period in excess of the prorated amount; and

(f) notwithstanding subsection (3.14), if the total remuneration paid for the association period by the corporation and all the corporations associated with it in that period is more than the difference between $1,250,000 and the prorated amount determined in clause (a) but not more than twice that difference, the tax payable under subsection (3.1.1) for the association period by all the corporations is 4.3% of the amount of remuneration paid for the association period in excess of the difference.

Becoming or ceasing to be associated

3(3.17)     Despite subsection 1.1(2), for the purposes of subsections (3.10) and (3.16), in determining when a corporation becomes or ceases to be associated with another corporation, the part of subsection 256(1) of the Income Tax Act (Canada) before paragraph (a) shall be read as "One corporation is associated with another at any time that".

4           Subsection 5(1) is amended by striking out "ending after June 30, 1982".

PART 2

THE INCOME TAX ACT

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

5           The Income Tax Act is amended by this Part.

6(1)        Rule 1 of subsection 4(1) is amended by striking out "and" at the end of subclause (b)(vii) and replacing subclause (b)(viii) with the following:

(viii) under subsection 4.1(2.6) for the 2009 to 2015 taxation years, and

(ix) under subsection 4.1(2.7) for the 2016 and subsequent taxation years.

6(2)        The following is added after subsection 4(2):

Indexing

4(3)        When an amount under a provision of this Act is to be indexed according to this subsection for a taxation year, the amount used under that provision for that year is, subject to subsection (5) (rounding), the amount determined by the following formula:

A × CPI

In this formula,

A

is the amount that would, but for subsection (5) (rounding), be used as the specified amount under that provision for the immediately preceding taxation year;

CPI

is the result, expressed in a decimal format rounded to the nearest one-thousandth (or to the higher one if it is at the midpoint between two such one-thousandths), arrived at by dividing

(a) the Consumer Price Index for Manitoba for the 12-month period that ended on the last September 30 before that year,

by

(b) the Consumer Price Index for Manitoba for the 12-month period immediately preceding the period mentioned in clause (a).

Consumer Price Index for Manitoba

4(4)        For the purpose of subsection (3), the Consumer Price Index for Manitoba for a 12-month period is the result arrived at by

(a) aggregating the Consumer Price Index (All-items) for Manitoba, as published by Statistics Canada under the authority of the Statistics Act (Canada) and adjusted in accordance with the regulations, if any, for each month in that period;

(b) dividing the aggregate obtained under clause (a) by 12; and

(c) rounding the result obtained under clause (b) to the nearest one-thousandth (or to the higher one if it is at the midpoint between two such one-thousandths).

Rounding

4(5)        If an amount determined by the formula in subsection (3) is not a multiple of one dollar, it must be rounded to the nearest multiple of one dollar (or to the higher one if it is at the midpoint between two such multiples).

7(1)        Subsection 4.1(2.6) is amended

(a) in the section heading, by striking out "and subsequent" and substituting "to 2015"; and

(b) in the part before the table, by adding "ending before 2016" after "subsequent taxation year".

7(2)        The following is added after subsection 4.1(2.6):

Basic tax payable — 2016 and subsequent taxation years

4.1(2.7)    Subject to subsection (2.8), an individual's basic tax payable for the 2016 taxation year and each subsequent taxation year is the total of the following amounts determined in relation to the individual's taxable income for that year ("TI"):

(a) 10.8% of the TI;

(b) if the TI exceeds $31,000, 1.95% of the excess;

(c) if the TI exceeds $67,000, 4.65% of the excess.

CPI adjustment to tax bracket amounts

4.1(2.8)    For the 2017 and subsequent taxation years, the dollar amounts specified in clauses (2.7)(b) and (c) are to be indexed according to subsection 4(3).

7(3)        Subsection 4.1(3) is amended by striking out "(2.6)" and substituting "(2.8)".

8(1)        Clause 4.6(3)(i) is replaced with the following:

(i) subject to subsection (3.1), $9,134 for a taxation year ending after 2013.

8(2)        The following is added after subsection 4.6(3):

Indexing of basic personal amount

4.6(3.1)    For the 2017 and subsequent taxation years, the basic personal amount specified in clause (3)(i) is to be indexed according to subsection 4(3).

9           Clause 4.7(1)(b) is amended by striking out "and" at the end of subclause (i.1) and adding the following after subclause (i.1):

(i.2) 0.7835% of the total amount included in the individual's income for the year in respect of a taxable dividend for which the federal dividend gross-up rate is 17%, and

10          Subclause 5(1)(a)(i) is amended by striking out "and the individual's school tax credit, if any, determined under section 5.5" and substituting ", the individual's school tax credit, if any, determined under section 5.5 and the individual's seniors' school tax rebate, if any, determined under section 5.5.1,".

11(1)       The definition "school tax" in subsection 5.3(1) is amended by adding ", subject to subsection 5.5.1(1)," after "means".

11(2)       Subsection 5.3(2) is amended

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

(a) on the form on which the education property tax credit, the school tax credit or the seniors' school tax rebate is claimed by the individual or the spouse or common-law partner; or

(b) by striking out "or" at the end of clause (b) and repealing clause (c).

12          Clause 5.5(2)(b) is amended by striking out "received" and substituting "claimed".

13          The following is added after section 5.5:

Definitions

5.5.1(1)    The following definitions apply in this section.

"school tax", in relation to a property for a calendar year, means the total of

(a) the tax imposed for that year under section 188 of The Public Schools Act in respect of the property; and

(b) the community revitalization levy, if any, imposed for that year in respect of that property under The Community Revitalization Tax Increment Financing Act in lieu of a tax under section 188 of The Public Schools Act;

divided by the number of dwelling units included in that property. (« taxe scolaire »)

"tax due date", in relation to a property for a calendar year, means 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. (« date d'échéance des taxes municipales »)

Residential and farm or other property

5.5.1(2)    If a property includes both

(a) property classified under The Municipal Assessment Act as Residential 1; and

(b) property classified under The Municipal Assessment Act as Farm Property or as Other Property;

and the school tax is not shown separately for each type of property on the tax statement, the school tax in respect of the residential property is its portioned value for the purpose of The Municipal Assessment Act multiplied by the tax rate that applies to the residential property.

Eligibility for rebate

5.5.1(3)    An individual is eligible for a seniors' school tax rebate in respect of a property for a taxation year if all of the following conditions are satisfied:

1.

The property

(a) is classified under The Municipal Assessment Act as Residential 1 or Residential 3; and

(b) if classified as Residential 3, consists of a condominium unit and the proportion of the common interest appurtenant to the unit.

2.

On the property's tax due date for that year, the individual or the individual's cohabiting spouse or common-law partner is a registered owner of the property or

(a) despite not being a registered owner, is a person to whom the property tax statement is addressed and who is required by the municipality to pay the municipal taxes imposed in respect of the property for that year;

(b) is liable under an agreement with the landlord that has been approved by the Minister of Finance for Manitoba, or by a person authorized by the minister for this purpose, to pay the municipal taxes imposed in respect of the property for that year; or

(c) is a shareholder of a family farm corporation, as defined in The Farm Lands Ownership Act, that is a registered owner of the property.

3.

The individual or the individual's cohabiting spouse or common-law partner has paid the property's municipal taxes for that year.

4.

The property is

(a) the principal residence of the individual, or of the individual's cohabiting spouse or common-law partner, for that part of the year that includes the property's tax due date; and

(b) the property for which one of them is entitled to an education property tax credit or municipal tax reduction for that year.

5.

The individual or the individual's cohabiting spouse or common-law partner is at least 65 years old in that year.

6.

The individual's cohabiting spouse or common-law partner has not claimed a seniors' school tax rebate for that year.

Death before tax due date

5.5.1(4)    If

(a) an individual would have been eligible for a seniors' school tax rebate in respect of a residential dwelling unit for a taxation year but for the death of the individual or the individual's cohabiting spouse or common-law partner after the beginning of the year, after reaching the age of 65 years and before the property's tax due date; and

(b) on the tax due date,

(i) the dwelling unit is the principal residence of the surviving individual, spouse or common-law partner, if there is one, and

(ii) the surviving individual, spouse or common-law partner, or the estate of the deceased individual, spouse or common-law partner is a registered owner or other person described in item 2(a), (b) or (c) of subsection (3) in relation to the property that includes the dwelling unit;

the rebate may be claimed by either the surviving individual or the deceased's estate as if the deceased individual had not died before the tax due date and the property had remained his or her principal residence until the tax due date.

Seniors' school tax rebate

5.5.1(5)    The seniors' school tax rebate for a taxation year after 2015 of an individual who is eligible for the rebate is equal to the amount determined by the following formula:

C − (.02 × I)

In this formula,

C

is the lesser of

(a) $470, and

(b) the amount, if any, by which

(i) the school tax for the year in respect of the individual's principal residence,

exceeds the total of

(ii) any education property tax credit that could be claimed for that year by the individual or the individual's cohabiting spouse or common-law partner in respect of the individual's principal residence, and

(iii) the municipal tax reduction that was or may be applied for the year to the individual's principal residence;

I

is the amount, if any, by which the individual's net family income exceeds $40,000.

14(1)       Subsection 10.1(1) is amended

(a) in the definition "approved co-op program", by striking out "by the Minister of Education and Advanced Learning" and substituting "under subsection (29)"; and

(b) in the definition "approved youth work experience training program" and in subclause (d)(i) of the definition "qualifying period of employment", by striking out "by the Minister of Education and Advanced Learning" and substituting "under subsection (30)".

14(2)       The following is added as subsections 10.1(29) and (30):

Approval of cooperative education programs

10.1(29)    The minister responsible for the administration of The Advanced Education Administration Act may approve, or authorize a person employed under that minister to approve, one or more cooperative education programs for the purpose of the co-op student hiring incentive under this section.

Approval of courses and employers for youth work experience programs

10.1(30)    The minister responsible for the administration of The Education Administration Act may approve, or authorize a person employed under that minister to approve,

(a) one or more high school courses or other training programs for the purpose of the youth work experience hiring incentive under this section; and

(b) one or more employers for providing paid work experiences to qualifying youths.

15(1)       Subsection 10.3(1) is amended

(a) in the definitions "clean air emission equipment", "energy co-generation equipment", "gasification equipment" and "geothermal energy equipment", by striking out "machinery or equipment, other than reconditioned or remanufactured machinery or equipment" and substituting "property, other than a reconditioned or remanufactured property";

(b) in the definition "eligible manufacturer", by striking out "prescribed";

(c) in the definition "solar thermal energy equipment", by striking out "equipment or machinery, other than reconditioned or remanufactured machinery or equipment" and substituting "property, other than a reconditioned or remanufactured property"; and

(d) by adding the following definition:

"green energy transmission equipment" means property, other than a reconditioned or remanufactured property, that is related to the transmission of energy from a renewable resource, is designed to minimize the loss of energy through transmission and is designated in the regulations as green energy transmission equipment. (« matériel de transport d'énergie verte »)

15(2)       Subsection 10.3(2.1) is replaced with the following:

Manufacturer's green energy transmission equipment tax credit

10.3(2.1)   For a taxation year beginning before July 1, 2023, an eligible manufacturer of green energy transmission equipment is deemed to have paid on account of its tax payable under this Act for that year the total of all amounts each of which is an amount determined by the following formula in respect of an item of green energy transmission equipment manufactured by it primarily in Manitoba and sold by it in the taxation year and before July 1, 2023 to a purchaser for use in Manitoba:

tax credit = adjusted cost × 8%

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

15(3)       Clause 10.3(7)(a) is amended by striking out "prescribed".

15(4)       Subsection 10.3(9) is replaced with the following:

Regulations

10.3(9)     The Minister of Finance for Manitoba may make regulations

(a) designating property as a type of equipment defined in subsection (1);

(b) respecting the provision of information to the government by

(i) a manufacturer of geothermal energy equipment or green energy transmission equipment, or

(ii) a purchaser of equipment for which the purchaser claims a tax credit under subsection (5);

(c) respecting the provision of information by a manufacturer or other seller of a geothermal heat pump to a purchaser to enable the purchaser to claim a tax credit under subsection (5);

(d) respecting any other matter that the Minister of Finance for Manitoba considers necessary or advisable for the administration and enforcement of this section or for measuring the effectiveness of the tax credits under this section.

16(1)       Subsections 10.5(1) to (3) are replaced with the following:

Interactive digital media tax credit

10.5(1)     Subject to subsections (2) to (2.3), a corporation is deemed to have paid on its balance-due day for a taxation year, on account of its tax payable under this Act for that year, the total of all amounts each of which is an amount claimed by it under subsection (1.1) in relation to

(a) expenses incurred by it in that year; or

(b) expenses incurred by it in one of the immediately preceding two taxation years that were not included in determining an amount claimed by the corporation for any of those preceding taxation years.

Claimable amount

10.5(1.1)   For the purpose of subsection (1), a corporation that is an eligible corporation for a taxation year may claim, for each eligible project in relation to which it incurred expenses in that year, an amount not exceeding

(a) if at least 25% of the salary and wages paid by it to its employees for that year was paid to its employees who are Manitoba residents for that year, 40% of its eligible project costs for that project for that year; or

(b) if clause (a) does not apply to the corporation in that year, 35% of its eligible labour costs for that project for that year.

Eligible project costs for the year

10.5(1.2)   For the purpose of clause (1.1)(a), a corporation's eligible project costs in relation to an eligible project for a taxation year is the total of

(a) the corporation's eligible labour costs in relation to the eligible project for the year; and

(b) the lesser of

(i) the corporation's eligible marketing and distribution costs in relation to the eligible project for the year, and

(ii) the amount by which $100,000 exceeds the total of all amounts each of which is the corporation's eligible marketing and distribution costs in relation to the eligible project for a previous taxation year in which an amount was claimed under this section.

Eligible labour costs for the year

10.5(1.3)   For the purpose of clause (1.1)(a) or (b), whichever applies, a corporation's eligible labour costs in relation to an eligible project for a taxation year is the amount, if any, by which

(a) the total of the corporation's labour expenses in relation to the eligible project that were incurred

(i) while it was an eligible corporation to which that clause applied, and

(ii) in that year or in any of the two immediately preceding taxation years;

exceeds the aggregate of

(b) all government assistance that is reasonably attributable to those expenses; and

(c) the portion of those expenses that was included in determining an amount claimed by the corporation under this section for any of those preceding taxation years.

Eligible marketing and distribution costs for the year

10.5(1.4)   For the purpose of clause (1.2)(b), a corporation's eligible marketing and distribution costs in relation to an eligible project for a taxation year is the amount, if any, by which the aggregate of

(a) 50% of the total of the corporation's marketing and distribution expenses for meals or entertainment in relation to the eligible project that were incurred

(i) while it was an eligible corporation to which clause (1.1)(a) applied, and

(ii) in that year or in any of the two immediately preceding taxation years; and

(b) the total of all other marketing and distribution expenses of the corporation in relation to the eligible project that were incurred

(i) while it was an eligible corporation to which clause (1.1)(a) applied, and

(ii) in that year or in any of the two immediately preceding taxation years;

exceeds the aggregate of

(c) all government assistance that is reasonably attributable to those expenses; and

(d) the portion of those expenses that was included in determining an amount claimed by the corporation under this section for any of those preceding taxation years.

Claim for credit

10.5(2)     No amount may be claimed under this section in respect of an eligible project after the filing-due date for the taxation year following the taxation year that includes the project's completion date.

Proof of credit

10.5(2.1)   A corporation is not entitled to a credit under this section for a taxation year unless the corporation has been issued a tax credit certificate under subsection (8) for that credit and the certificate is

(a) filed with the corporation's return for that year; or

(b) if the return is filed electronically, held by the corporation and filed with the Minister of National Revenue upon request.

Limitation for projects for government

10.5(2.2)   Despite subsection (1.1), if an eligible project consists of an interactive digital media product being developed primarily for sale or licence to the government or an agency of the government, a Manitoba municipality or an agency of a Manitoba municipality, or a corporation controlled by the government or by such a municipality or agency,

(a) any credit that may be claimed under this section in relation to that project may be claimed only after its completion date;

(b) the amount of the credit cannot exceed the amount, if any, by which

(i) the taxpayer's total cost of the project,

exceeds

(ii) the taxpayer's proceeds from the sale or licence of the product.

Credit may be reduced by government contribution

10.5(2.3)   Despite subsection (1.1), the total of a corporation's credits under this section in relation to an eligible project, including credits claimed in relation to the project for previous taxation years, must not exceed the amount by which

(a) the total of

(i) the corporation's costs of product development in Manitoba in relation to the project, and

(ii) if the corporation is claiming or has claimed an amount for marketing and distribution expenses in relation to the project, its marketing and distribution expenses in relation to the project;

exceeds

(b) the total of all assistance that

(i) the corporation receives or is entitled to receive from a government, municipality or other public authority in respect of the eligible project, other than a tax credit under this section,

(ii) is not repaid by the corporation before the day that is three years after the project's completion date, and

(iii) can reasonably be attributed to the costs referred to in clause (a).

"Eligible corporation" defined

10.5(3)     For the purpose of this section, a corporation is an eligible corporation for a taxation year if

(a) it is a taxable Canadian corporation with a permanent establishment in Manitoba throughout the year or that part of the year in which it incurred expenses that are included for that year in computing a credit under this section;

(b) it satisfies the additional requirements prescribed by regulation, if any; and

(c) either

(i) at least 25% of the salaries and wages paid by the corporation to its employees for that year was paid to employees who are Manitoba residents for that year, or

(ii) the total labour expenses that the corporation incurred in the year in relation to eligible projects is at least $1,000,000 more than the corporation's government assistance in relation to those expenses.

16(2)       Subsection 10.5(4) is amended

(a) by adding the following definition:

"completion date", in relation to an eligible project of a corporation, means the day on which the corporation incurs the final expense to be included in the corporation's labour expenses for the project. (« achèvement » ou « date d'achèvement »)

(b) in the definition "labour expense",

(i) by replacing the part before clause (a) with ""labour expense" of a corporation for a taxation year in relation to an eligible project means any of the following amounts to the extent that the amount is reasonable in the circumstances, directly attributable to the project, incurred within the taxation year and before 2020 and paid before the corporation applies for a tax credit in relation to that amount:", and

(ii) by replacing "for the project period" wherever it occurs in clauses (a), (b) and (c) with "for that taxation year";

(c) by replacing the definition "Manitoba resident" with the following:

"Manitoba resident", in relation to a corporation's taxation year, means resident in Manitoba on December 31 of that taxation year. (« résident du Manitoba »)

(d) in the definition "marketing and distribution expense",

(i) by replacing subclauses (b)(i) and (ii) with the following:

(i) before 2020, after the project's commencement date, and not later than 12 months after the project's completion date, and

(ii) in relation to an eligible project with a commencement date that is after December 31, 2012;

(ii) in subclause (f)(iii), by adding "eligible labour costs or" before "eligible project costs"; and

(e) by repealing the definition "project period".

16(3)       Clause 10.5(6)(a) is amended by adding "based on the information provided in, or in support of, the application" at the end.

16(4)       Clause 10.5(7)(e) is amended by adding ", if the corporation intends to claim a credit under subsection (1.1)," after "costs and".

16(5)       The part of subsection 10.5(8) before clause (a) is amended

(a) by striking out "qualifying"; and

(b) by adding "under this section" after "for a tax credit".

16(6)       Subsection 10.5(9) is amended

(a) by replacing clauses (c) and (d) with the following:

(c) the project's commencement date and its completion date or estimated completion date;

(d) a statement of

(i) the corporation's labour expenses, and

(ii) if the corporation wishes to claim an amount under subsection (1.1), its marketing and distribution expenses,

for that taxation year and for each preceding taxation year for which the corporation wishes to claim a credit under this section;

(b) by replacing subclause (e)(i) with the following:

(i) that the corporation is an eligible corporation for the taxation year and for each preceding taxation year for which the corporation wishes to claim an amount under subsection (1.1),

16(7)       Subsections 10.5(10) and (11) replaced with the following:

Revocation of certificate

10.5(10)    The minister may

(a) revoke a certificate of eligibility or a tax credit certificate issued to a corporation for a project if any information provided by the corporation to obtain the certificate is false or misleading or fails to disclose a material fact; or

(b) revoke a certificate of eligibility for a project if it is not carried out as proposed and ceases to be an eligible project.

Effect of revocation

10.5(11)    If a certificate is revoked under clause (10)(a), it is deemed never to have been issued. If a certificate is revoked under clause (10)(b), it is no longer valid and the minister may redetermine any tax credit based on the certificate as if the certificate had never been issued or as if it had become invalid before the day it was revoked.

16(8)       The following is added after clause 10.5(13)(a):

(a.1) prescribing one or more requirements for the purpose of clause (3)(b);

17          Subclauses 11.13(3)(b)(i) and (ii) are amended by striking out "2017" and substituting "2020".

PART 3

THE RETAIL SALES TAX ACT

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

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

19          Subsection 1(1.2) is replaced with the following:

Interpretation of "retail sale in the province"

1(1.2)      For the purpose of the definition "vendor" in subsection (1), a retail sale in the province includes a retail sale of tangible personal property by a seller who does not otherwise carry on business in the province, if the property is acquired for use or consumption in the province and

(a) the seller

(i) causes the property to be delivered in Manitoba,

(ii) directly or through an agent solicits orders for tangible personal property from persons in Manitoba by advertising or by any other means, and

(iii) accepts orders to purchase tangible personal property that originate in Manitoba; or

(b) the seller holds the property in inventory in Manitoba at the time of accepting the purchaser's order.

20(1)       The part of subsection 2(5.3) before clause (a) is amended by adding "for a total of six or more days in a calendar year" after "for temporary use in Manitoba".

20(2)       The following is added after subsection 2(5.3.1):

Determining untaxed amount

2(5.3.1.1)   For the purpose of subsection (5.3.1),

(a) the untaxed amount referred to in that subsection

(i) must be determined each time the property is brought into Manitoba for temporary use, and

(ii) is the depreciated value of the property at the time it is brought into Manitoba as determined under clause (b); and

(b) the depreciated value of a property at any time is either

(i) the greater of

(A) the price paid for the property, less 0.5% of that price for each month that the purchaser has owned the property, and

(B) 20% of the price paid for the property, or

(ii) the greater of

(A) the current replacement cost for similar property, less 1% of that replacement cost for each month that the purchaser has owned the property, and

(B) 20% of the replacement cost.

Temporary use fewer than 6 days per year

2(5.3.1.2)   Despite subsection (1), no tax is payable in respect of property brought into Manitoba for temporary use in Manitoba in any calendar year unless it is in Manitoba for a total of six or more days in that year.

21(1)       Subsection 2.2(1) is amended

(a) in clause (a) of the definition "market value", by adding "registered" before "vehicle dealer";

(b) by repealing the definition "vehicle dealer"; and

(c) by adding the following definitions:

"registered vehicle dealer" means a person with an RST number who carries on business in Manitoba or outside Manitoba as

(a) a dealer as defined in subsection 1(1) of The Drivers and Vehicles Act who,

(i) if the business is carried on in Manitoba, holds a valid dealer permit issued under Part 7 of that Act, or

(ii) if the business is carried on in a jurisdiction outside Manitoba, is authorized under the law of that jurisdiction to carry on business as a vehicle dealer; or

(b) an off-road vehicle dealer as defined in section 69 of The Drivers and Vehicles Act. (« commerçant de véhicules inscrit »)

"unregistered vehicle dealer" means a person who does not have an RST number and would, but for that fact, be a registered vehicle dealer. (« commerçant de véhicules non inscrit »)

21(2)       Subsection 2.2(2) is amended by adding "registered" before "vehicle dealer".

21(3)       The part of subsection 2.2(5) before clause (a) is amended by striking out "subsection (5.1)" and substituting "subsections (5.1) and (5.2)".

21(4)       The following is added after subsection 2.2(5.1):

Fair value — purchase from unregistered vehicle dealer

2.2(5.2)    For the purpose of this section, when a motor vehicle or off-road vehicle is purchased from an unregistered vehicle dealer, its fair value is

(a) its purchase price; or

(b) if subsection 2(9) would apply to the purchase if the dealer were a vendor, the amount on which tax would be payable because of that provision.

22          Subsection 3(1) is amended

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

(bb) the following items if they are purchased for domestic use and have a fair value of $100 or less:

(i) used furniture,

(ii) other used household items;

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

(ddd) an exhibit purchased or otherwise acquired by a not-for-profit museum or art gallery

(i) whose primary undertaking is to serve Manitobans by exhibiting its collections to the public during regular hours, and

(ii) whose revenue from donations and from grants or funding from public bodies is more than 50% of its total revenue.

23          Subsection 5(8) is replaced with the following:

Purchaser to obtain RST number

5(8)        A purchaser without an RST number must apply for one if the purchaser

(a) carries on business in Manitoba; and

(b) brings into Manitoba, or receives in Manitoba, in each of two or more months within the same calendar year, tangible personal property purchased outside Manitoba with a fair value of $800 or more.

24          Clause 9(2)(a) is amended by adding "registered" before "vehicle dealer".

PART 4

THE TAX ADMINISTRATION AND MISCELLANEOUS TAXES ACT

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

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

26          Subsection 22(5) is replaced with the following:

Electronic records

22(5)       A tax officer may specify the manner in which electronically maintained records are to be made available for inspection. The tax officer may require the owner or person in charge of the records or of the premises or information system in which they are kept to

(a) produce the relevant records in the form of a printout or in an electronically readable format that can be used by the tax officer, or both; and

(b) make them available for inspection at the premises where they are kept or send them to an address specified by the tax officer, or both.

27          The following is added after subsection 27.1(4):

Assistance orders

27.1(4.1)   When issuing the warrant, the judge may order a person to provide assistance if the person's assistance may reasonably be considered to be required to give effect to the warrant.

28          Subsection 43(1) is amended

(a) in clause (b), by striking out ", if the tax was first assessed after May 10, 2000"; and

(b) 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) any amount payable by it under section 45 (tax debt at time of bulk sale);

29          The definition "bad debt" in subsection 53.1(1) is amended by adding the following after clause (b):

It does not include an amount recoverable by a collector under subsection 9(2.1) of The Retail Sales Tax Act if the collector remitted the amount to the government after it was included in an assessment or reassessment issued under section 48 following an inspection, examination or audit by a tax officer.

30          Clauses 80(2)(a) and (a.1) are amended by adding ", or authorizes or causes another person to be in possession," after "is in possession".

PART 5

THE TOBACCO TAX ACT

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

31          The Tobacco Tax Act is amended by this Part.

32(1)       Subsection 3.1(2) is amended by adding ", or authorize or cause another person to be," after "No person shall be".

32(2)       Subclause 3.1(3)(a)(ii) is amended by adding ", or authorized or caused the other person to possess," after "possessed".

33(1)       Subsection 3.3(1) is amended by adding ", or authorize or cause another person to be," after "No person shall be".

33(2)       Subclause 3.3(2)(a)(ii) is amended by adding ", or authorized or caused the other person to possess," after "possessed".

PART 6

MISCELLANEOUS AMENDMENTS

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

34(1)       The Property Tax and Insulation Assistance Act is amended by this section.

34(2)       The part of section 16.13 before item 1 is amended by adding "before 2016" after "calendar year".

34(3)       Clause 16.15(a) is amended by adding "and" at the end of subclause (ii) and repealing subclause (iii).

S.M. 2015, c. 40 amended

35          Subsection 53(19) of The Budget Implementation and Tax Statutes Amendment Act, 2015 is amended by striking out "35(2)(b)" and substituting "35(2)(c)".

PART 7

COMING INTO FORCE

Coming into force

36(1)       Except as otherwise provided in this section, this Act comes into force on the day it receives royal assent.

Part 2: The Income Tax Act

36(2)       Section 9 is deemed to have come into force on January 1, 2016.

Part 3: The Retail Sales Tax Act

36(3)       Section 19 and clause 22(b) are deemed to have come into force on June 1, 2016.

Part 6: Miscellaneous amendments

36(4)       Section 34 is deemed to have come into force on January 1, 2016.

36(5)       Section 35 is deemed to have come into force on November 5, 2015.