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The Municipal Taxation and Funding Act
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This version is current as of December 1, 2016.
It has been in effect since June 14, 2012.

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C.C.S.M. c. M265

The Municipal Taxation and Funding Act

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

PART 1

MUNICIPAL TAXATION

Definitions

1           In this Part,

"municipality" includes a local government district; (« municipalité »)

"transfer of land" includes a conveyance, deed, grant, or other instrument whereby any land is granted, assigned, conveyed, or otherwise transferred. (« transfert d'un bien-fonds »)

S.M. 2005, c. 40, s. 67.

2           Repealed.

S.M. 2005, c. 40, s. 68.

2.1         Repealed.

S.M. 2002, c. 19, s. 46; S.M. 2005, c. 40, s. 68.

Municipality may impose taxes

3           The council of a municipality or in the case of a local government district, the resident administrator thereof, may pass by-laws imposing such forms of taxes as it deems advisable within the municipality and without restricting the generality of the foregoing, it may impose a tax on persons in the municipality who purchase or consume motel and hotel accommodation, or meals at a restaurant or dining room, or liquor, or on the transfer of land.

Contents of by-law

4(1)        A by-law under section 3 shall

(a) set out the rate or amount of tax imposed;

(b) state the product or services the sale or consumption of which is subject to the tax;

(c) prescribe the manner of collecting the tax imposed;

(d) provide for the appointment or designation of persons as collectors and fix the rate of commissions, if any, to be paid to collectors;

and may prescribe or authorize

(e) full or partial exemptions from the tax imposed under this Part;

(f) penalties for the violation of any provisions of the by-law; or

(g) the municipality to enter into agreements with the government with respect to the collection of tax imposed by the municipality under this Part.

By-law approved by L. G. in C.

4(2)        A by-law under subsection (1) has no force until it is approved by the Lieutenant Governor in Council.

S.M. 2005, c. 40, s. 67.

Agreement to collect tax

5           The government and a municipality may enter into an agreement whereby the government would collect the tax imposed by the municipality for remission to the municipality, subject to such terms and conditions as the agreement may provide.

PART 2

BUILDING MANITOBA FUND

Definitions

6           The following definitions apply in this Part.

"fiscal year" means the period beginning on April 1 of one year and ending on March 31 of the following year. (« exercice »)

"fuel" and "aviation fuel" have the same meaning as in The Fuel Tax Act. (« carburant » et « carburant aviation »)

"fund" means the special account established under section 7. (« Fonds »)

"gasoline" means a fuel, other than motive fuel and aviation fuel. (« essence »)

"local capital project" means a capital project for the benefit of a municipality that involves the acquisition or development of a facility, structure or land for public use, or the upgrading or replacement of such a facility or structure. (« projet d'immobilisations local »)

"minister" means the minister appointed by the Lieutenant Governor in Council to administer this Part. (« ministre »)

"motive fuel" means fuel that can be used to generate power by means of a diesel engine. (« carburant moteur »)

"municipal grant" means a grant under this Part

(a) to a municipality;

(b) to a corporation controlled by a municipality; or

(c) to a corporation or other organization that provides facilities or other things in a municipality, if the minister considers the provision of financial support for those facilities or other things to be in the interests of the municipality or its residents. (« subvention à une municipalité »)

"municipality" includes an Indian Reserve, a local government district and a community under The Northern Affairs Act. (« municipalité »)

"taxable litre" means a litre of fuel — other than aviation fuel and fuel used in the operation of a locomotive — on the purchase of which tax is payable under The Fuel Tax Act. (« litre taxable »)

S.M. 2005, c. 40, s. 69; S.M. 2010, c. 29, Sch. B, s. 37; S.M. 2011, c. 41, s. 34; S.M. 2012, c. 1, s. 45.

Building Manitoba Fund established

7(1)        There shall be established in the Consolidated Fund a special account to be known as the "Building Manitoba Fund".

7(2)        Repealed, S.M. 2011, c. 41, s. 35.

Annual credit to fund

7(3)        There shall be credited to the fund in each fiscal year the amounts appropriated for the purposes of the fund for that year.

Purposes of fund

7(4)        The amounts credited to the fund in a fiscal year may be used only for the payment of municipal grants and for expenses incurred by the government in support of local capital projects.

S.M. 2005, c. 40, s. 69; S.M. 2011, c. 41, s. 35; S.M. 2012, c. 1, s. 46.

Estimates of expenditure for Building Manitoba Fund

8           Subject to section 8.1, the government's estimates of expenditure for a fiscal year must include, as a sum to be voted for the purposes of the fund in that year, an amount not less than the sum determined in clause (a) or the amount determined in clause (b), whichever is greater:

(a) the sum of

(i) 4.15% of the amount estimated by the Minister of Finance to be the government's revenue under The Income Tax Act for the fiscal year,

(ii) $0.02 times the number of taxable litres of gasoline that the Minister of Finance estimates will be purchased in the fiscal year, and

(iii) $0.01 times the number of taxable litres of motive fuel that the Minister of Finance estimates will be purchased in the fiscal year;

(b) an amount equal to 1/7 of the amount estimated by the Minister of Finance to be the government's revenue under The Retail Sales Tax Act for the fiscal year.

S.M. 2005, c. 40, s. 69; S.M. 2011, c. 41, s. 36; S.M. 2012, c. 1, s. 47.

Adjustment — grants and expenses exceed minimum

8.1(1)      The minimum amount to be included under section 8 in the estimates of expenditure is to be reduced for a fiscal year — and for each of the next two fiscal years — by 1/3 of the amount, if any, by which

(a) the amounts paid out of or charged to the fund for the second preceding fiscal year (the "subject year");

exceeds

(b) the amount that would have been determined under section 8, without reference to this section, if the estimated tax revenues and fuel sales for the subject year had been equal to the actual tax revenues and fuel sales for that year.

Adjustment — grants and expenses less than minimum

8.1(2)      The minimum amount to be included under section 8 in the estimates of expenditure is to be increased for a fiscal year — and for each of the next two fiscal years — by 1/3 of the amount, if any, by which

(a) the amount that would have been determined under section 8, without reference to this section, if the estimated tax revenues and fuel sales for the second preceding fiscal year (the "subject year") had been equal to the actual tax revenues and fuel sales for that year;

exceeds

(b) the amounts paid out of or charged to the fund for the subject year.

Commencement of adjustments

8.1(3)      Subsections (1) and (2) do not apply if the subject year referred to in those subsections ends before April 1, 2011.

S.M. 2011, c. 41, s. 36; S.M. 2012, c. 1, s. 48.

9(1)        Repealed, S.M. 2012, c. 1, s. 49.

Grants for public transit systems

9(1.1)      The municipal grants for a fiscal year must include for each municipality that operates a regular or rapid public transit system a transit operating grant in an amount that is not less than 50% of the annual operating cost of the transit system in excess of its annual operating revenue, as determined by the minister in consultation with the municipality.

Terms and conditions

9(2)        Subject to the regulations, the minister may impose terms and conditions on a municipal grant.

9(3) and (4)  Repealed, S.M. 2011, c. 41, s. 37.

S.M. 2005, c. 40, s. 69; S.M. 2008, c. 17, s. 24; S.M. 2010, c. 33, s. 84; S.M. 2011, c. 41, s. 37; S.M. 2012, c. 1, s. 49.

Annual report

9.1         For each fiscal year, the annual report for the department over which the minister presides must include a report on how the amounts credited to the fund for that year were used.

S.M. 2011, c. 41, s. 38; S.M. 2012, c. 1, s. 50.

Regulations

10          The Lieutenant Governor in Council may make regulations

(a) defining words or expressions used but not defined in this Part;

(b) respecting municipal grants, including reporting requirements for grant recipients and terms and conditions that may be imposed on grants;

(c) providing authority to investigate, inspect or audit any matter pertaining to a municipal grant;

(d) respecting any matter the Lieutenant Governor in Council considers necessary or advisable for the purposes of this Part.

S.M. 2005, c. 40, s. 69; S.M. 2012, c. 1, s. 51.

PART 3

C.C.S.M. REFERENCE

C.C.S.M. reference

11          This Act shall no longer be referred to as chapter T5 of the Continuing Consolidation of the Statutes of Manitoba but may be referred to as chapter M265 of the Continuing Consolidation of the Statutes of Manitoba.

S.M. 2005, c. 40, s. 69.