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Fifth Session, Thirty-Ninth Legislature

This version is based on the printed bill that was distributed in the Legislature after First Reading.   It is not the official version.   If accuracy is critical, you can obtain a copy of the printed bill from Statutory Publications or view the online bilingual version (PDF).

Bill 51

THE BUDGET IMPLEMENTATION AND TAX STATUTES AMENDMENT ACT, 2011


Explanatory Note

TABLE OF CONTENTS

1     Corporation Capital Tax Act

2     The Fuel Tax Act

3     The Health and Post Secondary Education Tax Levy Act

4     The Income Tax Act

5     The Municipal Revenue (Grants and Taxation) Act

6     The Retail Sales Tax Act

7     The Tax Administration and Miscellaneous Taxes Act

8     The Tobacco Tax Act

9     Miscellaneous provisions

10    Coming into force

Sch. A   The Emissions Tax on Coal Act

Sch. B   The Poverty Reduction Strategy Act


(Assented to                                         )

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

PART 1

CORPORATION CAPITAL TAX ACT

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

1           The Corporation Capital Tax Act is amended by this Part.

2           Subsections 12(8) and (9) are repealed.

3           The following is added after subsection 13(3):

Exemption for small financial institutions

13(4)       For fiscal years ending after April 12, 2011, no tax is payable under this Act by a bank, loan corporation, trust corporation or trust and loan corporation whose taxable paid up capital at the close of the fiscal year, as determined in accordance with subsection 8(4) or (5), as the case may be, is less than $4,000,000,000.

4           Subsections 14(8) and (9) are repealed.

PART 2

THE FUEL TAX ACT

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

5           The Fuel Tax Act is amended by this Part.

6           Section 1 is amended by adding the following definition:

"dwelling unit" means

(a) a house, apartment, suite, or separate portion of a multiple dwelling, occupied by a single family or a group of persons living as a single family or household; or

(b) an apartment block or other multiple dwelling containing not more than four apartments, suites, or other self-containing domestic establishments. (« logement »)

7           The following is added after section 12 and before the centred heading that follows that section:

Exemption — bulk fuel exported

12.1        No tax is payable by a buyer of bulk fuel who

(a) exports that fuel to a jurisdiction outside Manitoba for the buyer's use in that jurisdiction or for the purpose of sale or resale in that jurisdiction;

(b) is registered with the director as an exporter of bulk fuel; and

(c) reports to the director in accordance with the regulations.

PART 3

THE HEALTH AND POST SECONDARY EDUCATION TAX LEVY ACT

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

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

9           Subsection 1.1(2) is replaced with the following:

Meaning of "associated"

1.1(2)      For the purposes of this Act, two corporations are associated with each other in a year if they would be associated with each other in the year under section 256 of the Income Tax Act (Canada) if the references in that section to "taxation year" were read as "calendar year".

10          Subsection 2(2) is amended

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

(b) an employer is deemed to have a permanent establishment in Manitoba if an employee or agent of the employer is based in Manitoba and

(i) has general authority to contract for the employer, or

(ii) has a stock of merchandise owned by the employer from which the employee or agent fills orders;

(b) in clause (d), by adding ", or by an employee for or on behalf of an employer," after "use by an employer"; and

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

(g) an employer with no fixed place of business is deemed to have a permanent establishment

(i) at the principal place at which the employer's business is conducted, and

(ii) at each place at which a substantial portion of the employer's business is conducted.

11          Section 3.2 is replaced with the following:

Definitions

3.2(1)      The following definitions apply in this section.

"commercial truck" means a motor vehicle with a permanently attached truck or delivery body that is designed and used, alone or together with one or more trailers, for the commercial carriage of goods. (« véhicule commercial »)

"interjurisdictional trip" means a trip

(a) from a place in Manitoba directly to a place outside Manitoba; or

(b) from a place outside Manitoba directly to a place in Manitoba or through Manitoba to another place outside Manitoba. (« trajet interterritorial »)

"interjurisdictional common carrier" means an employer who pays remuneration to an employee for operating a commercial truck on an interjurisdictional trip. (« transporteur public interterritorial »)

Remuneration is $2,500,000 or less

3.2(2)      Despite subsection 3(3.1.1), if the total remuneration paid by an interjurisdictional common carrier for a year is $2,500,000 or less, the tax payable by the carrier under that subsection is the positive amount, if any, determined by the following formula:

Tax = 4.3% × [M − ($1,250,000 × M/R)]

In this formula,

M   is the total remuneration paid by the carrier for the year to its employees who work only in Manitoba;

R   is the total remuneration paid by the carrier for the year.

Remuneration is more than $2,500,000

3.2(3)      Despite subsection 3(3.1.1), if the total remuneration paid by an interjurisdictional common carrier for a year is greater than $2,500,000, no tax is payable under that subsection in respect of remuneration paid by the carrier to an employee for operating a commercial truck

(a) outside Manitoba; or

(b) in Manitoba on an interjurisdictional trip during which the employee operated the truck both inside and outside Manitoba.

12          Section 4 is replaced with the following:

Ceasing to have permanent establishment in Manitoba

4           For the purpose of section 3, remuneration paid by an employer in a month in which the employer ceases to have any permanent establishment in Manitoba does not include any remuneration paid after the date on which that cessation occurred.

PART 4

THE INCOME TAX ACT

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

13          The Income Tax Act is amended by this Part.

14(1)       Clauses (a) to (b.1) of Rule 6 in subsection 4(1) are replaced with the following:

(a) the total of the amounts claimed by the individual for the taxation year under the following provisions, multiplied by the percentage that applies to that year under clause 4.6(2)(a):

(i) subsection 4.6(10) (pension income amount),

(ii) subsection 4.6(10.1) (adoption costs),

(iii) subsections 4.6(10.2) and (10.4) (fitness tax credit),

(iv) subsections 4.6(10.7) and (10.8) (children's arts and cultural activity tax credit);

14(2)       Clause (g) of Rule 7 in subsection 4(1) is amended

(a) in subclause (ii), by striking out "community enterprise investment" and substituting "small business venture capital"; and

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

(iii) the individual's employee share purchase tax credit for the year determined under section 11.18;

14(3)       The following is added after clause (e) of Rule 9 in subsection 4(1):

(f) the amount, if any, that the individual is deemed by subsection 10.4.1(1) (cultural industries printing tax credit) to have paid on account of his or her tax payable for the year.

15(1)       Subsection 4.6(3) is amended by striking out "and" at the end of clause (d) and replacing clause (e) with the following:

(e) $8,134. for a taxation year ending after 2008 and before 2011;

(f) $8,384. for the 2011 taxation year;

(g) $8,634. for the 2012 taxation year;

(h) $8,884. for the 2013 taxation year; and

(i) $9,134. for a taxation year ending after 2013.

15(2)       Clause 4.6(5)(e) is replaced with the following:

(e) for a taxation year ending after 2008 and before 2011, the amount determined by the following formula:

$8,134. − A

(f) for the 2011 taxation year, the amount determined by the following formula:

$8,384. − A

(g) for the 2012 taxation year, the amount determined by the following formula:

$8,634. − A

(h) for the 2013 taxation year, the amount determined by the following formula:

$8,884. − A

(i) for a taxation year ending after 2013, the amount determined by the following formula:

$9,134. − A

15(3)       Clause 4.6(6)(e) is replaced with the following:

(e) for a taxation year ending after 2008 and before 2011, the amount determined by the following formula:

$8,134. − A

(f) for the 2011 taxation year, the amount determined by the following formula:

$8,384. − A

(g) for the 2012 taxation year, the amount determined by the following formula:

$8,634. − A

(h) for the 2013 taxation year, the amount determined by the following formula:

$8,884. − A

(i) for a taxation year ending after 2013, the amount determined by the following formula:

$9,134. − A

15(4)       Clause 4.6(10.2)(b) is amended by replacing the description of B in the formula with the following:

B   is the total of all amounts each of which is

(i) an amount that relates to an expense included in A in respect of the individual for the year, and

(ii) an amount that any person is or was entitled to receive as a reimbursement, allowance or other form of assistance, other than an amount that is included in computing the income for any taxation year of that person and is not deductible in computing the taxable income of that person.

15(5)       The following is added after subsection 4.6(10.6):

Children's arts and cultural activity tax credit

4.6(10.7)   For a taxation year ending after 2010, an individual who is resident in Manitoba at the end of the taxation year may claim, in respect of each qualifying child or qualifying disabled child of the individual, the lesser of

(a) $500.; and

(b) the amount determined by the following formula:

A − B

In this formula,

A   is the total of all amounts each of which is an eligible arts and cultural activity expense that was paid in the taxation year by the child or on behalf of the child by the individual or the individual's spouse or common-law partner;

B   is the total of all amounts each of which is

(i) an amount that relates to an expense included in A in respect of the child for the year, and

(ii) an amount that any person is or was entitled to receive as a reimbursement, allowance or other form of assistance, other than an amount that is included in computing the income for any taxation year of that person and is not deductible in computing the taxable income of that person.

Additional arts and cultural activity tax credit for child with disability

4.6(10.8)   An individual who is entitled to claim an amount under subsection (10.7) for a taxation year in respect of a qualifying disabled child may claim the additional amount of $500. for that year if the amount determined for that year under clause (10.7)(b) in respect of that child is at least $100.

Definitions

4.6(10.9)   Subject to the regulations, the following definitions apply in subsections (10.7) to (10.9).

"eligible activity" means

(a) an organized activity offered by a scouting, guiding or other youth development organization (such as Scouts Canada, Girl Guides of Canada, a 4-H club or Cadets Canada); and

(b) an organized activity offered by any other organization, or a private lesson or tutoring, in any of the following fields:

(i) leadership training,

(ii) personal effectiveness training,

(iii) performing arts,

(iv) graphic arts,

(v) language arts,

(vi) natural sciences,

(vii) social sciences,

(viii) academic and medical aspects of athletics,

(ix) environmental stewardship,

(x) safety,

(xi) crafts and hobbies,

(xii) nutrition and food preparation. (« activité admissible »)

"eligible arts and cultural activity expense" in respect of a qualifying child or qualifying disabled child of an individual for a taxation year means

(a) the amount of a fee paid to a person (other than the individual's spouse or common-law partner or a person who is under 18 years of age) or partnership to the extent that the fee is attributable to the cost of registration or membership of the child in a qualifying program of arts and cultural activity provided by the person or partnership;

(b) the amount of a fee paid for the child's membership in an organization, if more than 50% of the activities offered to children by the organization include time spent in an eligible activity, or, if a choice of activities is offered to the child, the child participates in an eligible activity during more than 50% of available program time; and

(c) the portion of the fee paid for a family membership in an organization that is reasonably attributable to the child, if more than 50% of the activities offered to children by the organization include time spent in an eligible activity, or, if a choice of activities is offered to the child, the child participates in an eligible activity during more than 50% of the available program time;

but does not include any portion of the fee that

(d) is attributable to the cost of accommodation, travel, food or beverages;

(e) is an eligible fitness expense as defined in subsection (10.3);

(f) is deductible in computing any person's income for any taxation year; or

(g) is included in computing the amount of a tax credit (other than the credit under subsection (7)) of any person for any taxation year. (« dépense admissible pour activités artistiques et culturelles »)

"qualifying child" of an individual for a taxation year means a child of the individual who is under 16 years of age at the beginning of the taxation year. (« enfant admissible »)

"qualifying disabled child" of an individual for a taxation year means a child of the individual

(a) who is under 18 years of age at the beginning of the taxation year; and

(b) in respect of whom an amount is deductible under section 118.3 of the federal Act in computing any person's tax payable for the taxation year. (« enfant handicapé admissible »)

"qualifying program of arts and cultural activity" means a regular series of planned and supervised activities that

(a) is likely to contribute to the development and use of creativity or expertise in academic or intellectual skills, in culture or the arts, in languages or heritage, in wilderness and the natural environment, or in interpersonal interaction among children;

(b) does not promote illegal activity;

(c) is supervised and safe and suitable for children of the age-group for which it is offered;

(d) is not part of a school curriculum; and

(e) either

(i) engages the child in an eligible activity for a minimum of eight consecutive weeks, or

(ii) is delivered as a camp program for a minimum of five consecutive days. (« programme admissible d'activités artistiques et culturelles »)

Regulations

4.6(10.10)  For the purpose of subsections (10.7) to (10.9), the Lieutenant Governor in Council may make regulations

(a) respecting the issuance of receipts, the maintenance of books and records, and the provision of information or access to information, for the purpose of verifying the validity of a claim for a tax credit;

(b) in order to harmonize the children's arts and cultural activity tax credit with any similar credit under the federal Act or under an income tax statute of an agreeing province,

(i) limiting or expanding the types of expenses that may be included in determining the tax credit under subsection (10.7), and

(ii) extending or limiting the meaning of any term defined in subsection (10.9);

(c) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for the administration of the tax credits under subsections (10.7) and (10.8).

15(6)       Subsection 4.6(14.1) is amended

(a) by replacing the formula with the following:

A − B/P

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

A   is the lesser of $5,000. and the individual's tuition and education amount for the year under subsection (14);

15(7)       Subsection 4.6(20) is amended

(a) in clause (e), by striking out "(10.2) or (10.4)" and substituting "(10.2), (10.4), (10.7) or (10.8)"; and

(b) in subclauses (l)(i) and (q)(i), by adding "(10.7), (10.8)," after "(10.4),".

16          Subsections 5.4(3) and (4) are replaced with the following:

Education property tax credit

5.4(3)      The education property tax credit for a taxation year after 2010 at the end of which the individual is less than 65 years old is the amount, if any, by which

(a) the lesser of $700. and the individual's occupancy cost for the year;

exceeds

(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.

Education property tax credit for seniors

5.4(4)      Subject to subsection (5), the education property tax credit for a taxation year after 2010 at the end of which the individual is at least 65 years is the amount, if any, by which

(a) the lesser of

(i) the amount by which $1,100. exceeds the lesser of $400. and 1% of the individual's family income for the year, and

(ii) the individual's occupancy cost for the year;

exceeds

(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.

Transitional adjustments for 2011 and 2012

5.4(5)      When applying subsection (4) to the 2011 and 2012 taxation years, the references in subclause (a)(i) to "$1,100." and "$400." are to be read as follows:

(a) for the 2011 taxation year, as "$950." and "$250.", respectively;

(b) for the 2012 taxation year, as "$1,025." and "$325.", respectively.

17(1)       Subsection 5.11(1) is amended

(a) in the definition "assessing authority", by striking out everything after "recipient of services" and substituting the following:

under any of the following programs of that department:

(a) Children's disABILITY Services, formerly called Children's Special Services;

(b) Community Living Disability Services, formerly called Supported Living.

(b) by replacing the definition "primary caregiver" with the following:

"primary caregiver", in relation to a qualified care recipient for a taxation year, means an individual who

(a) is resident in Manitoba at the end of the taxation year;

(b) without reward or compensation of any kind other than the tax credit under this section, personally provides care or supervision to the recipient;

(c) is not the spouse or common-law partner of a person who receives compensation for providing care or supervision to the recipient; and

(d) has acknowledged in writing to the assessing authority, in a form acceptable to that authority, his or her role as the recipient's sole primary caregiver. (« soignant primaire »)

(c) by replacing subclause (b)(ii) of the definition "qualified care recipient" of the English version with the following:

(ii) made by a health care provider and approved by an assessing authority in relation to the individual,

is assessed as requiring a level of care equivalent to level 2, 3 or 4 care under the Manitoba Home Care program.

17(2)       Subsection 5.11(2) is amended

(a) in the part before the formula, by striking out "2008" and substituting "2010"; and

(b) in the formula, by striking out "$1,020." and substituting "$1,275.".

18          Section 5.13 is amended

(a) in the part before clause (a) of the English version, by striking out "lesser" and substituting "least";

(b) in the part of clause (b) before subclause (i), by adding ", or of the individual's spouse or common-law partner," after "individual";

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

(i) infertility treatment services (other than a procedure to reverse an elective sterilization procedure) provided to the individual or to the individual's spouse or common-law partner in Manitoba by a physician or by a clinic that provides those services in Manitoba, or

(ii) medication prescribed by a physician in Manitoba in relation to infertility treatment services described in subclause (i), whether those services are provide inside or outside Manitoba;

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

(c) nil, if a claim for a credit under this section for the taxation year is made by the individual's spouse or common-law partner.

19          The following is added after subsection 7(2):

Limitation

7(2.1)      For the purpose of subsection (2), the product of L × (Tm/Tc) cannot exceed the corporation's taxable income earned in Manitoba for the taxation year.

20(1)       Subsection 7.2(2) is amended

(a) in the definition "investment tax credit", by striking out everything after clause (d) and substituting the following:

exceeds the total of all amounts each of which is an amount previously deducted under subsection (1), or previously credited under subsection (1.1), in respect of an amount included under clauses (a) to (d) in determining the corporation's investment tax credit at the end of the taxation year;

(b) in the part of the definition "qualified property" before clause (a), by striking out "2012" and substituting "2015".

20(2)       The following is added after subsection 7.2(6):

Corporation may renounce tax credit

7.2(7)      A corporation may renounce its entitlement to all or any part of the portion of its investment tax credit that is attributable to qualified property acquired by it in a taxation year, but only if it does so no later than one year after the filing-due date for that taxation year.

Effect of renunciation

7.2(8)      A corporation that renounces an amount under subsection (7) in respect of a taxation year is deemed for all purposes never to have received, to have been entitled to receive or to have had a reasonable expectation of receiving the amount.

21(1)       The definition "research and development tax credit" in subsection 7.3(1) is amended by striking out everything after clause (d.1) and substituting the following:

exceeds the total of all amounts each of which is an amount previously deducted under subsection (2), or previously credited under subsection (2.3), in respect of an amount included under clauses (a) to (d.1) in determining the corporation's research and development tax credit at the end of the taxation year.

21(2)       The following is added after clause 7.3(2.3)(b):

For the purpose of clause (b), the portion of an expenditure of a trust or partnership that is included in computing the corporation's research and development tax credit is deemed to be the corporation's eligible expenditure.

21(3)       Subsections 7.3(3) and (4) are amended by striking out "clause (a) or (c)" and substituting "clause (a), (a.1) or (c)".

22          Section 7.14 is replaced with the following:

Cooperative development tax credit

7.14(1)     Subject to subsection (3), an eligible contributor may deduct from the tax otherwise payable by it for a taxation year an amount not exceeding the contributor's cooperative development tax credit (T) determined according to the following table based on the total of the cooperative development contributions (C) made by the contributor in that taxation year:

Contributions (C) Tax Credit (T)
$10,000 or less T = C × 3/4
$10,001 to $30,000 T = $7,500 + (C − $10,000)/2
$30,001 to $50,000 T = $17,500 + (C − $30,000)/3
$50,001 or more T = $24,167

Refundable credit

7.14(2)     Subject to subsection (3), if an eligible contributor's maximum tax credit for a taxation year under subsection (1), determined according to the table in that subsection, exceeds its tax otherwise payable for the year, it is deemed to have paid, on account of its tax payable for the taxation year, the amount of the excess or $750., whichever is less.

Proof of credit

7.14(3)     An eligible contributor is not entitled to a credit under this section for a taxation year unless the tax credit receipt or receipts that were issued to the contributor for that credit are

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

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

Unused credit deductible in other years

7.14(4)     If an eligible contributor's maximum credit for a taxation year under subsection (1), determined according to the table in that subsection, exceeds the total of $750. and its tax otherwise payable for that year, the contributor may apply the excess — to the extent that it has not been applied to reduce its tax otherwise payable for any taxation year — to reduce its tax payable for

(a) any of the three preceding taxation years ending after 2009; or

(b) any of the next 10 taxation years.

23          The following is added after section 7.16 and before the centred heading that follows that section:

"NEIGHBOURHOODS ALIVE!" TAX CREDIT

Definitions

7.17(1)     The following definitions apply in this section and section 7.18.

"eligible donation" means a gift of money that

(a) is made by a taxable Canadian corporation to a Manitoba charity after April 12, 2011;

(b) is deductible under paragraph 110.1(1)(a) of the federal Act in computing the donor's taxable income; and

(c) is used by the charity or designated by the charity for its use in

(i) establishing and operating an eligible social enterprise, or

(ii) assisting another Manitoba charity controlled by it to establish and operate an eligible social enterprise. (« don admissible »)

"eligible service contribution" of a corporation means a contribution of services by it, without reward or compensation of any kind, to a Manitoba charity to assist it in the establishment or operation of the eligible social enterprise supported by one or more eligible donations of the corporation. (« services admissibles »)

"eligible social enterprise" means a business or not-for-profit undertaking that

(a) is carried on in Manitoba by or on behalf of a Manitoba charity;

(b) commenced operation after April 12, 2011;

(c) generates revenue for the charity;

(d) in the case of a business, is a related business of the charity within the meaning of subsection 149.1(6) of the federal Act; and

(e) employs individuals who, at the time of applying for employment, are resident in Manitoba and face multiple barriers to employment. (« entreprise sociale admissible »)

"Manitoba charity" means a registered charity that is resident in Manitoba or has a permanent establishment in Manitoba. (« organisme de bienfaisance du Manitoba »)

Barriers to employment

7.17(2)     For the purpose of the definition "eligible social enterprise" in subsection (1), an individual faces a barrier to employment if, at the time of applying for employment, the individual

(a) has been out of the labour force for more than a year;

(b) has not completed high school;

(c) is more than 45 years old;

(d) is receiving assistance under The Employment and Income Assistance Act;

(e) has a previous criminal conviction;

(f) is eligible for the disability tax credit under section 118.3 of the federal Act;

(g) is a Convention refugee, a protected person or a person in need of protection within the meaning of sections 95 to 97 of the Immigration and Refugee Protection Act (Canada);

(h) is located in a community with a population of not more than 20,000 and an unemployment rate that is, and has been for the last two years, at least 50% above the national average; or

(i) meets any other criteria prescribed by regulation.

Deduction from tax payable

7.18(1)     A corporation may deduct from its tax otherwise payable under this Act for a taxation year that ends after 2011 an amount not exceeding its tax credit determined under subsection (2) for the year if the corporation

(a) is a taxable Canadian corporation with a permanent establishment in Manitoba;

(b) made an eligible donation to a Manitoba charity within the immediately preceding four taxation years;

(c) made an eligible service contribution in that taxation year for the benefit of the eligible social enterprise assisted by the eligible donation referred to in clause (b); and

(d) receives from the Manitoba charity to whom the eligible service contribution was provided, a receipt, in a form approved by the Minister of Finance for Manitoba, acknowledging receipt of the contribution, describing the contribution and stating when it was provided.

Amount of tax credit

7.18(2)     For the purpose of subsection (1), a corporation's tax credit for a taxation year is the lesser of

(a) $15,000.; and

(b) the amount, if any, by which

(i) an amount equal to 30% of the total eligible donations made by the corporation in the immediately preceding four taxation years,

exceeds

(ii) the total of the tax credits determined under this subsection for any preceding taxation year in respect of the eligible donations referred to in subclause (i).

Carry-over of unused credit

7.18(3)     A corporation may deduct from its tax otherwise payable for a taxation year ending after 2011 the amount, if any, by which

(a) the total of all amounts each of which is its tax credit determined under subsection (2) for any of the immediately preceding 10 taxation years or the immediately following three taxation years;

exceeds

(b) the total of all amounts each of which is an amount deducted by the corporation under subsection (1) or this subsection in respect of the tax credits described in clause (a).

Charity to file return

7.18(4)     Within six months after the end of the taxation year in which a Manitoba charity receives an eligible donation or an eligible service contribution in support of an eligible social enterprise, the charity must file with the Minister of Finance for Manitoba

(a) a copy of each receipt issued by it for an eligible service contribution received by it in that year; and

(b) a return of information, in a form approved by the Minister of Finance for Manitoba, that

(i) identifies and describes the enterprise,

(ii) identifies each corporation that made an eligible donation or eligible service contribution in that year to support the establishment and operation of the enterprise, and describes each service contribution for which a receipt was issued in that year,

(iii) sets out the total of the eligible donations made in that year in support of the enterprise, and by whom they were made,

(iv) verifies that the service contributions have been used, and the eligible donations have been used or set aside for use, in the establishment or operation of the enterprise, and

(v) provides employment statistics for the enterprise, including the numbers of full-time and part-time employees employed in the enterprise in that year, how many of them faced multiple barriers to employment and the types of barriers faced by them.

24(1)       Subsection 10.1(1) is amended

(a) in the definitions "qualifying graduate" and "qualifying journeyperson", by striking out "2012" and substituting "2015";

(b) in subclause (a)(ii) of the definition "qualifying period of employment", by striking out "2014" and substituting "2015"; and

(c) in the part of the definition "qualifying work placement" before clause (a), by striking out "2012" and substituting "2015".

24(2)       Clauses 10.1(25)(b) and 10.1(26)(b) are amended by striking out "subsection (1)" and substituting "subsection (2)".

24(3)       Subsections 10.1(27) and (28) are repealed.

25(1)       Subsection 10.2(2) is amended

(a) by adding the following definitions:

"eligible equipment" means any of the following types of equipment, if it is used by the taxpayer for the purpose of preventing, eliminating or significantly reducing odour that arises — or without the use of the equipment would arise — from organic waste used or created in the course of the taxpayer's business in Manitoba:

(a) a straw cannon;

(b) a sewage lagoon cover or seal;

(c) biofiltering equipment;

(d) a storage tank or container for organic waste;

(e) spraying equipment for aerobic or anaerobic treatment of organic waste;

(f) a soil injector for a manure spreader. (« matériel admissible »)

"organic waste" means a waste by-product, such as refuse or sewage, that consists of carbon compounds derived from living organisms. (« déchets organiques »)

(b) in the definition "eligible expenditure",

(i) in clause (a), by striking out "prescribed by regulation" and substituting "an item of eligible equipment", and

(ii) in clauses (b) and (c), by striking out "2012" and substituting "2015".

25(2)       Subsection 10.2(2.1) is amended by adding the following after clause (b):

(b.1) no amount shall be included in respect of

(i) equipment used for monitoring or testing for odours,

(ii) equipment, other than a soil injection manure spreader, used for transmitting or transporting organic waste or odours, or

(iii) equipment used primarily to prevent, reduce or eliminate air pollution or water pollution;

25(3)       Subclause 10.2(3)(b)(i) is amended by adding "or anaerobic" after "aerobic".

25(4)       Clause 10.2(8)(b) is repealed.

25(5)       The following is added after subsection 10.2(8):

Corporation may renounce tax credit

10.2(9)     A corporation may renounce its entitlement to all or any part of the portion of its odour-control tax credit that is attributable to eligible expenditures incurred in a taxation year, but only if it does so no later than one year after the filing-due date for that taxation year.

Effect of renunciation

10.2(10)    A corporation that renounces an amount under subsection (9) in respect of a taxation year is deemed for all purposes never to have received, to have been entitled to receive or to have had a reasonable expectation of receiving the amount.

26(1)       The definition "eligible manufacturer" in subsection 10.3(1) is amended by adding "or prescribed green energy transmission equipment" after "equipment".

26(2)       Subsection 10.3(2) is amended

(a) in the section heading, by striking out "green" and substituting "geothermal"; and

(b) in the formula, by striking out "5%" and substituting "7.5%".

26(3)       The following is added after subsection 10.3(2):

Manufacturer's green energy transmission equipment tax credit

10.3(2.1)   For a taxation year beginning before 2019, an eligible manufacturer of prescribed green energy transmission equipment is deemed to have paid on account of its tax payable under this Act for that year the amount determined in accordance with the regulations in respect of the items of prescribed green energy transmission equipment sold by it in the taxation year to a purchaser for use in Manitoba.

26(4)       Subsection 10.3(5) is amended

(a) in the formula in clause (a), by striking out "10%" and substituting "15%"; and

(b) in the formula in clause (b), by striking out "5%" and substituting "7.5%".

26(5)       Clause 10.3(7)(a) is amended by adding "or prescribed green energy transmission equipment" after "pumps".

26(6)       Subsection 10.3(9) is amended

(a) in subclause (c)(i), by adding "or prescribed green energy transmission equipment" after "equipment"; and

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

(d.1) prescribing, as green energy transmission equipment, equipment that is related to the transmission of energy from a renewable resource and designed to minimize the loss of energy through transmission;

(d.2) prescribing a formula or method for calculating the tax credit under subsection (2.1) in respect of prescribed green energy transmission equipment;

27(1)       Subsection 10.4(1) is amended

(a) in the formula in subclause (a)(ii), by striking out the description of P2 and substituting the following:

P2is the total number of pages that make up the books published by the publisher in the taxation year, and, for the purpose of this formula, the number of pages that make up an electronic book is to be determined in accordance with the regulations; and

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

(b) the total of

(i) 10% of the publisher's eligible printing costs for the taxation year, and

(ii) 5% of the publisher's eligible printing costs for the taxation year that were incurred and paid after April 12, 2011.

27(2)       Subsection 10.4(3) is amended

(a) by replacing the definition "book publishing labour costs" with the following:

"book publishing labour costs" of a publisher for a taxation year ending after April 12, 2011, means the total of

(a) the amounts paid by the publisher in that taxation year and before 2015 as salary or wages to its employees who were resident in Manitoba on December 31 of that taxation year; and

(b) 65% of the amounts paid by the publisher in that taxation year and before 2015 as fees to an individual who is resident in Manitoba and not an employee of the publisher, or to a corporation with a permanent establishment in Manitoba;

to the extent that the amounts are reasonable in the circumstances and

(c) are related to the publication of hardcover or paperback books; or

(d) were incurred after April 12, 2011, and are related to the publication of electronic books;

but are not related to the marketing or promotion of books. (« coûts en main-d'œuvre d'édition »)

(b) in the definition "eligible book",

(i) in clause (a), by adding "in the case of a book published before April 13, 2011," before "it is",

(ii) in clause (b), by striking out "2012" and substituting "2015",

(iii) in clause (c), by adding "in the case of a hardcover or paperback book," before "a prescribed", and

(iv) in clause (e), by adding "or, in the case of an electronic book, it is the equivalent of at least 48 pages long as determined in accordance with the regulations" after "long"; and

(c) in clause (b) of the definition "eligible printing costs", by striking out "2013" and substituting "2016".

27(3)       Subsection 10.4(9) is amended by adding the following after clause (f):

(f.1) prescribing how the number of pages of an electronic book is to be determined for the purpose of this section;

28          The following is added after section 10.4 and before the centred heading that follows that section:

CULTURAL INDUSTRIES PRINTING TAX CREDIT

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, an amount equal to 15% of the printer's eligible printing revenue for the taxation year.

Claim for credit

10.4.1(2)   No amount may be claimed under subsection (1) for a taxation year except by filing with the minister, within one year after the filing due date for the taxation year and in a form and manner authorized by the Minister of Finance for Manitoba, the information to be provided on that form.

Definitions

10.4.1(3)   The following definitions apply in this section.

"eligible printer" mean a person who

(a) in the case of a corporation, has a permanent establishment in Manitoba in the taxation year;

(b) in the case of an individual, is resident in Manitoba at the end of the taxation year; and

(c) in the course of the person's business in Manitoba, prints, assembles and binds books. (« imprimeur admissible »)

"eligible printing revenue" of an eligible printer for a taxation year means the total of all amounts each of which

(a) is paid in the taxation year, after April 12, 2011 and before 2016, to the printer by a publisher who

(i) is not related to the printer, and

(ii) is resident in Canada;

for a service provided by the printer in Manitoba after April 12, 2011 and before 2016; and

(b) is paid to the printer for printing, assembling or binding

(i) an eligible book as defined in subsection 10.4(3), or

(ii) a book that would be an eligible book as defined in subsection 10.4(3) if the definition "eligible book" were read without reference to "first edition,". (« revenus d'impression admissibles »)

29          The part of subsection 11.7(2) before clause (a) is amended by striking out "2012" and substituting "2015".

30          Clause 11.8(2)(a) is amended by striking out "2012" and substituting "2015".

31          The following is added after section 11.17:

EMPLOYEE SHARE PURCHASE TAX CREDIT

Definitions

11.18(1)    The following definitions apply in this section.

"employee" of an issuer means an individual who is an employee, director or officer of the issuer or of a wholly-owned subsidiary of the issuer. (« employé »)

"issuer" means a corporation that issues shares to its employees under a registered ESOP. (« émetteur »)

"registered ESOP" means an employee share ownership plan that meets prescribed requirements and is registered by the Minister of Entrepreneurship, Training and Trade for the purpose of this section, and "ESOP" refers to a share ownership plan that is or has been a registered ESOP. (« RADE enregistré »)

Employee share purchase tax credit

11.18(2)    Subject to subsection (3) and the regulations, an employee's share purchase tax credit for a taxation year is an amount equal to 30% of the cost to the employee of all shares in the capital stock of an issuer issued to the employee in the taxation year under a registered ESOP.

Proof of credit

11.18(3)    An individual is not entitled to a tax credit under subsection (2) for a taxation year unless the tax credit receipt issued by the issuer for the shares purchased by the individual in the taxation year is

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

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

Regulations

11.18(4)    The Lieutenant Governor in Council may make regulations

(a) prescribing requirements for an employee share ownership plan and its administration that must be met in order for the plan to be eligible for registration;

(b) prescribing duties and requirements for issuers and plan administrators in relation to ESOPs, including recordkeeping and reporting requirements;

(c) respecting the deregistration of a registered ESOP;

(d) prescribing amounts to be included in, or excluded from, an individual's cost of a share for the purpose of calculating the individual's tax credit under this section;

(e) respecting the recovery of a credit obtained under this section in the event that a share in relation to which it was obtained is redeemed, transferred or otherwise disposed of contrary to the regulations or the terms and conditions of an ESOP;

(f) respecting the recovery of credits obtained under this section, by imposing a tax or penalty on an issuer, in the event that a registered ESOP ceases to be eligible for registration or the issuer or plan administrator fails to comply with the regulations or the terms and conditions of the ESOP;

(g) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for the proper administration of the tax credit under this section.

32          The following regulations are repealed:

(a) the Cooperative Development Tax Credit Regulation, Manitoba Regulation 124/2010;

(b) the Manitoba Film and Video Production Tax Credit Regulation, Manitoba Regulation 208/98;

(c) the Odour-Control Tax Credit Regulation, Manitoba Regulation 32/2005.

PART 5

THE MUNICIPAL REVENUE (GRANTS AND TAXATION) ACT

C.C.S.M. c. M265 amended

33          The Municipal Revenue (Grants and Taxation) Act is amended by this Part.

34          Section 6 is amended by adding the following definition:

"municipal grant" means a grant

(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 Lieutenant Governor in Council 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 »)

35(1)       Subsection 7(2) is repealed.

35(2)       Subsection 7(3) is amended

(a) by striking out "beginning after 2005"; and

(b) in the English version, by striking out "grants to municipalities" and substituting "municipal grants".

35(3)       Subsection 7(4) is amended by striking out "the grants paid or distributed in that year to municipalities" and substituting "the municipal grants paid or distributed in that year".

36          Section 8 is replaced with the following:

Estimates of expenditure for municipal grants

8           Subject to section 8.1, the government's estimates of expenditure for a fiscal year beginning after March 31, 2011 must include, as a sum to be voted for municipal grants under this Part 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.

Adjustment — grants 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 municipal grants paid 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 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 municipal grants paid 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.

37          Subsections 9(3) and (4) are repealed.

38          The following is added after section 9:

Annual report

9.1         For each fiscal year beginning after 2010, the annual report of the department over which the minister responsible for The Municipal Act and The City of Winnipeg Charter presides must include a report on the expenditures made by the government out of the sums appropriated for municipal grants for that fiscal year.

PART 6

THE RETAIL SALES TAX ACT

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

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

40          Subsection 1(1) is amended

(a) in the definition "closely related",

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

(b) the relationship between two corporations at any time that

(i) 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

(ii) there exists no right or option that, if exercised, would result in any condition in subclause (i) not being satisfied,

(ii) by replacing clause (d) with the following:

(d) the relationship between two partnerships at any time that

(i) 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, as the case may be, 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

(ii) there exists no right or option that, if exercised, would result in any condition in subclause (i) not being satisfied.

(iii) by repealing clause (e); and

(b) in subclause (a)(i) of the definition '"purchase price" or "sale price"', by adding "(other than lease contracts)" after "other contracts".

41(1)       Subsection 2(1.9) is amended by striking out "and" at the end of clause (a), adding "and" at the end of subclause (b)(ii) and adding the following:

(c) if requested by an applicant whose application was received after this clause came into force, the minister may

(i) apply the reduced rate to any billing period beginning within two years before the date that the minister received the application, if the minister is satisfied that the applicant would have qualified for the reduced rate if the application had been made before that billing period, and

(ii) refund the difference between the tax that was paid and the tax that would have been payable for a prior billing period if the reduced rate had been applied to that billing period at the time that the tax was payable, or authorize the vendor to apply that difference as a credit toward the tax payable by the applicant for any other billing period.

41(2)       Subsection 2(5.3.1) is replaced with the following:

Calculation and payment of tax for temporary use

2(5.3.1)    A person who has chosen to pay tax under this subsection in respect of property brought into Manitoba for temporary use in Manitoba

(a) must pay the tax under subsection (1) in respect of the portion of the fair value of the property that is attributable to the cost of bringing the property into Manitoba or relocating it in Manitoba or of assembling or installing it in Manitoba, and is not required to pay the tax under that subsection in respect of the remaining portion (referred to in this subsection as the "untaxed amount") of the property's fair value;

(b) must pay, for each day on which the property is used by the person in Manitoba, a tax equal to

(i) if the property is owned by the person, 7% of 1/1095th of the untaxed amount, or

(ii) if the property is leased to or rented by the person, 7% of the amount of the daily lease or rental payments or, if they are not payable daily, the daily equivalent of those payments,

unless that day falls in a calendar month for which tax is payable under clause (c);

(c) must pay, for each calendar month in which the property is used by the person in Manitoba on at least 16 days, a tax equal to

(i) if the property is owned by the person, 7% of 1/36th of the untaxed amount, or

(ii) if the property is leased to or rented by the person, 7% of the amount of the monthly lease or rental payments or, if they are not payable monthly, the monthly equivalent of those payments; and

(d) must report the use of the property and remit the tax in accordance with the regulations.

42          The part of subsection 2.2(9) after clause (c) is replaced with the following:

but only if

(d) neither the tax on the purchased vehicle nor the tax on the sold vehicle is subject to proration under this Act based on the use of the vehicle for interjurisdictional commercial purposes; and

(e) the purchaser registers the purchased vehicle within two years after purchasing it.

43(1)       Subsection 3(1) is amended

(a) in clause (e.1), by adding "and farm horses" after "livestock";

(b) in clause (w.1),

(i) by repealing subclause (vi),

(ii) in subclause (ix) of the French version, by striking out "fours" and substituting "séchoirs", and

(iii) by adding the following after subclause (ix):

(x) water treatment chemicals,

(xi) kiln strips used in drying lumber;

(c) by replacing clause (w.4) with the following:

(w.4) the following items when purchased for use in manufacturing a product for sale or in providing a taxable service:

(i) welding tips and laser or plasma nozzles,

(ii) a protective material, such as masking tape or kraft paper, if the material is to be applied to the product for its protection during painting;

(d) by replacing clauses (cc) and (cc.1) with the following:

(cc) biomass materials (other than charcoal products) consisting only of wood, wheat, flax, oats, barley, sunflower, hemp or corn, if they are purchased for use as fuel for heating or cooking;

(e) by replacing clause (jj) with the following:

(jj) the following items when purchased for flood prevention or control:

(i) bags to be used as sandbags, and ties for such bags,

(ii) flood tubes and cage flood barriers;

(f) by adding the following as clauses (bbb) and (ccc):

(bbb) a mixture of sand and salt containing at least 80% sand, when purchased by a municipality or local government district for use in filling sandbags or cage flood barriers for flood prevention or control;

(ccc) water-softener salt when purchased by a municipality or local government district for mixing with water for its own use or for the sale of water to its residents.

43(2)       Clause 3(28)(d) is replaced with the following:

(d) a charitable or non-profit organization in the course of operating a recreational camp program primarily for children 17 years of age or under, or for underprivileged or disabled persons.

44(1)       Subsection 4(1) is amended

(a) in clause (a)

(i) in the French version,

(A) by striking out "obtenu" in the part before subclause (i), and

(B) by adding "obtenu" after "soit" in subclauses (i) and (ii), and

(ii) by striking out "or" at the end of subclause (i), adding "or" at the end of subclause (ii) and adding the following after subclause (ii):

(iii) provided by a charitable or non-profit organization in its facilities during the course of operating a recreational camp program primarily for children 17 years of age or under, or for underprivileged or disabled persons;

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

(g) microfilming, photography, videography and film production services, including the development and printing of film;

(g.1) sound recording services;

44(2)       Subsection 4(1.3) is amended by striking out "to the purchaser".

44(3)       Clause 4(8)(a) is amended

(a) by adding "(l)," after "(i),";

(b) by adding "(cc)," after "(w.4),";

(c) by adding ", (hh), (hh.1), (jj)," after "(dd)";

(d) by striking out "or (nn)" and substituting "(nn)"; and

(e) by adding ", (vv), (xx.1), (yy), (zz), (bbb) or (ccc)" after "(nn)".

44(4)       Subsection 4(10) is replaced with the following:

No tax on appraisal or laboratory analysis

4(10)       No tax is payable in respect of an appraisal or laboratory analysis.

44(5)       The following is added after subsection 4(12):

No tax on certain services provided on reserve

4(13)       No tax is payable on an amount charged for

(a) a telecommunication service in respect of a telecommunication that begins or ends on a transmitter that is ordinarily situated on a reserve, if it is invoiced with respect to such a transmitter to an Indian residing on a reserve or to a band; or

(b) the provision of lodging on a reserve, if it is invoiced to an Indian or a band.

For the purpose of this subsection, "band", "Indian" and "reserve" have the same meaning as in the Indian Act (Canada).

45(1)       Clause 9(2.6)(c) is replaced with the following:

(c) a sale by a domestic boarding house to its residents at an all-inclusive single price for food and lodging for a continuous period of at least one month;

(c.1) a sale by a charitable or non-profit organization in the course of operating a recreational camp program primarily for children 17 years of age or under, or for underprivileged or disabled persons;

45(2)       The following is added after subsection 9(2.6):

Exception for sale of lodging in certain circumstances

9(2.7)      Despite subsection (2), tax is not required to be collected and remitted by a charitable or non-profit organization on a sale of lodging in the course of operating a recreational camp program primarily for children 17 years of age or under, or for underprivileged or disabled persons, if the organization paid tax as a purchaser of the lodging.

46(1)       Subsection 26(2.2) is amended by adding the following after clause (b):

and the applicant provides evidence sufficient to satisfy the minister that the applicant is entitled to the refund.

46(2)       Subsection 26(13) is replaced with the following:

Refund in respect of manure lagoon liner

26(13)      If a farmer has paid an amount in respect of tax paid by a purchaser in respect of a liner for a manure lagoon installed by the purchaser for the farmer's use in the farming production of livestock, the minister may refund to the farmer the amount so paid.

46(3)       Subsection 26(14) is amended

(a) in the section heading, by striking out "or lift chair"; and

(b) in the section,

(i) by striking out "a lift chair or", and

(ii) by striking out "equipment" and substituting "bed".

46(4)       The following is added after subsection 26(14):

Refund in respect of motor vehicle

26(15)      If

(a) the purchaser of a motor vehicle or off-road vehicle as defined in subsection 2.2(1), after registering the vehicle under The Drivers and Vehicles Act, obtains an appraisal report prepared and certified, in approved form, by a vehicle dealer who regularly deals in that type of vehicle or by an employee of an appraisal firm who is qualified to appraise that type of vehicle; and

(b) according to the appraisal report, the appraised value of the vehicle is less than the value on which tax was paid by the purchaser;

the minister may refund to the purchaser the tax paid by the purchaser in excess of the tax payable on the appraised value.

Refund in respect of vehicle or aircraft purchased for use outside Manitoba

26(16)      If a person,

(a) while resident in Canada, purchases a vehicle, off-road vehicle or aircraft;

(b) takes the purchased property out of Manitoba, for use permanently outside Manitoba, within 30 days after purchasing it; and

(c) pays any tax payable in the jurisdiction to which the purchased property is taken for use in that jurisdiction;

the minister may refund the tax paid by the purchaser in Manitoba on the purchase of the property.

Refund in respect of property purchased for use outside Canada

26(17)      If

(a) a purchaser who is not resident in Canada pays tax in the amount of $50 or more on a purchase of tangible personal property other than tobacco products, liquor, wine or beer; and

(b) within 30 days after the date of the purchase, the property is taken out of Canada by or on behalf of the purchaser to be used permanently outside of Canada;

the minister may refund the tax so paid by the purchaser.

PART 7

THE TAX ADMINISTRATION AND MISCELLANEOUS TAXES ACT

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

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

48          Subsection 4(2) is replaced with the following:

Designation of tax officer as peace officer

4(2)        The director may designate a tax officer or a class of tax officers as peace officers for the purpose of the administration and enforcement of any or all of the tax Acts. Any tax officer so designated, or belonging to a class of tax officers so designated, in relation to a tax Act is deemed for the purpose of The Summary Convictions Act to be a peace officer in relation to that tax Act.

49          The following is added after section 4:

Provisions not applicable to tax officers, etc.

4.1         No provision of a tax Act

(a) that restricts or prohibits the possession, use or operation of any thing; or

(b) under which the possession, use or operation of any thing by a person is an offence;

applies to

(c) a tax officer who is in possession of the thing in connection with the administration or enforcement of a tax Act or a regulation;

(d) a peace officer or a member of the technical or scientific staff of a department of the Government of Canada or Manitoba who is in possession of the thing for the purposes of, and in connection with, his or her employment; or

(e) a person acting as an agent for a person described in clause (c) or (d).

50(1)       Subsection 9(1) is amended by adding "statutory or government" before "holiday" wherever it occurs.

50(2)       Subsection 9(2) is replaced with the following:

Exception

9(2)        Despite subsection (1), if the due date for filing a periodic return of information or remitting the tax to be remitted with such a return falls on a weekend or a statutory or government holiday, the due date is extended to the next day that does not fall on a weekend or a statutory or government holiday.

51(1)       Clause 10(1.2)(a) is amended by striking out "a taxation Act of Canada or of another province or territory of Canada" and substituting "an Act of Canada or of another province or territory of Canada that imposes a tax or levies a duty".

51(2)       The part of subsection 10(1.3) after clause (c) is amended by striking out "a taxation Act of Canada or of another province or territory of Canada" and substituting "an Act of Canada or of another province or territory of Canada that imposes a tax or levies a duty".

51(3)       Subsection 10(2) is amended

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

(c) a permit under The Tobacco Tax Act for producing any mark or stamp, including tear tape, capable of being applied to the packaging of a tobacco product to represent it as being marked or stamped for the tax purposes of Manitoba, if the director is not satisfied that the applicant for the permit will

(i) take reasonable steps to ensure the security of the marks or stamps in the applicant's possession and the applicant's equipment for producing marks or stamps,

(ii) ensure that the marks or stamps produced by the applicant will identify them as having been produced by the applicant,

(iii) keep adequate records of the quantity of marks or stamps produced by the applicant, and

(iv) cooperate with an inspection, examination or audit;

(b) by adding "and" at the end of clause (d) and adding the following after clause (d):

(e) a tax authorization to a person if the director has reason to believe that it would be in the public interest to do so.

52          Subsection 34(4) is amended

(a) by adding the following after subclause (b)(i):

(i.1) second, to pay a penalty equal to three times the tax that would be payable on a purchase of the bulk fuel by a purchaser,

(b) in subclause (b)(ii), by striking out "second" and substituting "third"; and

(c) in subclause (c)(i), by striking out "the amount referred to in subsection (1)" and substituting "a penalty equal to three times the tax that would be payable on a purchase of the bulk fuel by a purchaser".

53          The following is added after section 39:

Penalty — missing tobacco mark, stamp or tear tape

39.1(1)     Every person who is issued or acquires a mark, stamp or tear tape to be applied to a tobacco product or its packaging and cannot account for the mark, stamp or tear tape as being in his or her possession is liable, upon assessment by the director, to a penalty unless

(a) the person satisfies the director that the mark, stamp or tear tape was affixed to a tobacco product or its packaging as prescribed under The Tobacco Tax Act and that an amount has been remitted on account of tax under that Act on that product; or

(b) in the case of a mark, stamp or tear tape that was cancelled, the person satisfies the director that it was returned or destroyed as instructed by the director.

Amount of penalty

39.1(2)     The amount of the penalty for any mark, stamp or tear tape not accounted for is equal to the tax that would be imposed on the type and quantity of tobacco product to which, or to the packaging of which, the mark, stamp or tear tape was designed to have been applied.

54          Clause 42(2)(a) is amended by adding "or subsection 39.1(1) (missing tobacco marks or stamps)" at the end.

55(1)       Subsection 44(1) is replaced with the following:

Liability of transferee after non-arm's length transfer

44(1)       If a person transfers money or other property directly or indirectly, by means of a trust or by any other means, to or for the benefit of another person

(a) with whom the transferor, at the time of the transfer, is not dealing at arm's length; or

(b) who is under the age of 18 years;

the transferee is liable, upon assessment under section 46, for the transferor's tax debt to the extent provided for in subsection (2), unless the transferor establishes that he or she was not a tax debtor at the time of the transfer and did not make the transfer in anticipation of becoming liable for another person's existing tax debt.

55(2)       Subsection 44(2) is amended

(a) in subclause (a)(i), by adding "and any tax debt of the transferor assessed after the time of the transfer in respect of a tax liability that arose before the time of the transfer" after "transfer"; and

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

(b) interest payable on that amount, calculated at the same rate that applies to the transferor's tax debt,

(i) from the date of the transfer to the date of payment, or

(ii) if the transferor's debt arose only upon an assessment under section 46 that was made after the date of the transfer, from the date of the assessment to the date of payment.

56          Subsection 45(6) is amended by adding ", including any amount assessed on or after that date in respect of transactions that occurred before that date," after "the date of sale".

57          The following is added after subsection 53(5).

Director may apply refund to taxes, interest and penalties owing

53(6)       If a person is entitled to a refund under this section or under any provision of a tax Act, the director may apply all or any part of the refundable amount to

(a) the payment of a tax debt owing by the person; or

(b) the payment of any tax, interest or penalties payable by the person under a tax law of Canada.

Notice of application of refund

53(7)       When applying an amount under subsection (6) to the payment of another amount owing by the person entitled to a refund, the director must give the person a written notice setting out

(a) the amount so applied;

(b) the debt to which it was applied; and

(c) the date on which it was so applied.

58          Subsection 77(1) of the English version is amended by striking out "or" at the end of clause (e) and adding "or" at the end of clause (e.2).

59(1)       Clause 79(2)(a) is amended

(a) in subclause (i), by striking out "imprisonment for up to three months, or both,"; and

(b) in subclause (ii), by striking out ", imprisonment for up to 12 months, or both".

59(2)       Subsection 79(3) is repealed.

60(1)       Clause 80(2)(a) is replaced with the following:

(a) is in possession of more than four units of unmarked tobacco contrary to section 3.1 or 3.3 of The Tobacco Tax Act;

(a.1) is in possession of fewer than five units of unmarked tobacco contrary to section 3.1 or 3.3 of The Tobacco Tax Act;

60(2)       Clause 80(4)(a) is replaced with the following:

(a) in the case of an individual who is guilty of an offence under clause (2)(a.1) or (d.1),

(i) for a first offence, a fine of at least $1,000 and not more than $10,000,

(ii) for a second offence, a fine of at least $10,000 and not more than $50,000, and

(iii) for a third or subsequent offence, a fine of at least $50,000 and not more than $100,000;

(a.1) in the case of an individual who is guilty of any other offence under this section,

(i) for a first offence, a fine of at least $1,000 and not more than $10,000, imprisonment for up to six months, or both,

(ii) for a second offence, a fine of at least $10,000 and not more than $50,000, imprisonment for up to one year, or both, and

(iii) for a third or subsequent offence, a fine of at least $50,000 and not more than $100,000, imprisonment for up to two years, or both;

60(3)       The part of subsection 80(5) before clause (a) is amended by adding ", other than an offence under clause (2)(a.1) or (d.1)," after "under this section".

61          The definition "common-law partner" in subsection 111(1) 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) with the other person, registered their common-law relationship under section 13.1 of The Vital Statistics Act,

Unproclaimed provision repealed

62          Section 73 of The Budget Implementation and Tax Statutes Amendment Act, 2008, S.M. 2008, c. 3, is repealed.

PART 8

THE TOBACCO TAX ACT

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

63          The Tobacco Tax Act is amended by this Part.

64(1)       Subsection 2(1) is amended

(a) in clause (a), by striking out "20.5¢" and substituting "22.5¢";

(b) in clause (c), by striking out "18¢" and substituting "20¢"; and

(c) in clause (d), by striking out "19.5¢" and substituting "21.5¢".

64(2)       Subsection 2(6) is replaced with the following:

Definition of "price at retail"

2(6)        In this section, for the purpose of determining the amount of tax payable on a cigar, "price at retail" means the price paid by the purchaser for the cigar or, where that price cannot be determined or no price is paid for the cigar, the price set by the minister for that cigar or that type of cigar.

65          Section 3 is amended by striking out "the amount" and substituting "the total of the amounts".

66          Clause 3.1(3)(a.1) is amended by striking out "Excise Tax Act (Canada)" and substituting "Excise Act, 2001 (Canada)".

67          The following is added after subsection 10(1):

Collection of tax on cigars

10(1.1)     If a collector who sells a cigar at wholesale does not know the price at which it is later sold at retail, the collector is deemed to have collected on account of the tax to be collected on the retail sale, an amount equal to the tax that would be payable by the retail purchaser if the price at retail were 120% of the wholesale price at which the cigar was sold by the collector.

68          Clause 28(1)(b) is repealed.

PART 9

MISCELLANEOUS PROVISIONS

City of Winnipeg Charter amended

69(1)       The City of Winnipeg Charter is amended by this section.

69(2)       The definition "purchase price" in subsection 441(1) is replaced with the following:

"purchase price", in relation to a sale in respect of which tax is payable under a by-law made under subsection 442(1), means the amount on which tax under The Retail Sales Tax Act is payable in respect of that sale, or would be payable if the sale were not exempt from tax under that Act. (« prix d'achat »)

69(3)       Subsection 449(4) is amended by striking out "The Revenue Act" and substituting "The Retail Sales Tax Act".

C.C.S.M. c. E116 amended

70(1)       The Enforcement of Canadian Judgments Act is amended by this section.

70(2)       The definition "Canadian judgment" in section 1 is replaced with the following:

"Canadian judgment" means

(a) subject to subsection (2), a judgment, decree or order made in a civil proceeding by a court of a province or territory of Canada, other than Manitoba,

(i) that requires a person to pay money, including an order for the payment of money that is made in the exercise of a judicial function by a tribunal of a province or territory of Canada, other than Manitoba, and is enforceable as a judgment of the superior court of unlimited trial jurisdiction in that province or territory,

(ii) under which a person is required to do or not do an act or thing, or

(iii) that declares rights, obligations or status in relation to a person or thing; and

(b) a Canadian tax judgment. (« jugement canadien »)

70(3)       Section 1 is further amended by adding the following definitions:

"Canadian tax judgment" means

(a) a judgment made, before or after the coming into force of this definition, by a court of a province or territory of Canada other than Manitoba for the recovery of an amount of money payable under a tax Act; and

(b) a certificate of an amount payable under a tax Act that is or was registered, before or after the coming into force of this definition, in a court of a province or territory of Canada other than Manitoba and is deemed under the law of that province or territory to be a judgment of that court. (« jugement canadien de nature fiscale »)

"tax Act" means an Act that imposes a tax or levy or that governs the administration and enforcement of an Act that imposes a tax or levy. (« loi fiscale »)

70(4)       Section 1 is further amended by renumbering it as subsection 1(1) and adding the following as subsection (2):

Exclusions from "Canadian judgment"

1(2)        A judgment, decree or order referred to in clause (a) of the definition "Canadian judgment" in subsection (1) does not include one that

(a) is for maintenance or support, including an order enforceable under The Family Maintenance Act;

(b) is for the payment of money as a penalty or fine for committing an offence;

(c) relates to the care, control or welfare of a minor, other than a Canadian civil protection order;

(d) is made by a tribunal of a province or territory of Canada other than Manitoba whether or not it is enforceable as an order of the superior court of unlimited trial jurisdiction in that province or territory, to the extent that it provides for relief other than the payment of money; or

(e) relates to the granting of probate or letters of administration or the administration of the estate of a deceased person.

C.C.S.M. c. M226 amended

71          The following is added after clause 22(1)(b.2) of The Municipal Assessment Act:

(b.3) is used as the conservation centre, as defined in section 1 of The Polar Bear Protection Act, and is used or operated, or held for use or operation, by Assiniboine Park Conservancy Inc.;

S.M. 2010, c. 29 amended

72          Clause 39(4)(i) of Schedule B to The Budget Implementation and Tax Statutes Amendment Act, 2010, S.M. 2010, c. 29, is repealed.

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

73          Clauses (e) and (f) of the definition "applicable percentage" in subsection 16.1(1) of The Property Tax and Insulation Assistance Act are replaced with the following:

(e) in relation to the 2009 and 2010 taxation years, 75%; and

(f) in relation to a taxation year after 2010, 80%.

Manitoba Regulation 122/2010 repealed

74          The Farmland School Tax Rebate Regulation, Manitoba Regulation 122/2010, is repealed.

Emissions Tax on Coal Act enacted

75          The Emissions Tax on Coal Act set out in Schedule A is hereby enacted.

Poverty Reduction Strategy Act enacted

76          The Poverty Reduction Strategy Act set out in Schedule B is hereby enacted.

PART 10

COMING INTO FORCE

Coming into force

77(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

77(2)       Section 3 is deemed to have come into force on April 13, 2011.

Part 2: The Fuel Tax Act

77(3)       Sections 6 and 7 are deemed to have come into force on April 1, 2011.

Part 4: The Income Tax Act

77(4)       The following provisions are deemed to have come into force on January 1, 2011:

(a) subsections 15(1) to (5) and (7);

(b) section 16;

(c) subsection 17(2).

77(5)       Subsection 15(6) and clause 17(1)(c) are deemed to have come into force on January 1, 2009.

77(6)       Section 18 is deemed to have come into force on October 1, 2010.

77(7)       Subsection 26(2) is deemed to have come into force on April 13, 2011, and applies to geothermal heat pumps sold on or after that day.

77(8)       Subsection 26(4) is deemed to have come into force on April 13, 2011, and applies to geothermal equipment and installation costs incurred on or after that day.

Part 5: The Municipal Revenue (Grants and Taxation) Act

77(9)       Part 5 is deemed to have come into force on April 1, 2011.

Part 6: The Retail Sales Tax Act

77(10)      The following provisions are deemed to have come into force on May 1, 2011:

(a) subsection 41(2);

(b) subclause 43(1)(b)(iii) insofar as it enacts subclause 3(1)(w.1)(xi);

(c) clause 43(1)(d), and clause 43(1)(f) insofar as it enacts clause 3(1)(ccc);

(d) clause 44(3)(b), and clause 44(3)(e) insofar as it adds "or (ccc)".

77(11)      The following provisions are deemed to have come into force on March 1, 2011:

(a) clause 43(1)(e);

(b) clause 43(1)(f) insofar as it enacts clause 3(1)(bbb);

(c) clause 44(3)(c) insofar as it adds ", (jj)";

(d) clause 44(3)(e) insofar as it adds ", (bbb)".

Part 7: The Tax Administration and Miscellaneous Taxes Act

77(12)      Section 58 is deemed to have come into force on April 1, 2011.

77(13)      Section 61 is deemed to have come into force on June 30, 2004.

Part 8: The Tobacco Tax Act

77(14)      Subsection 64(1) is deemed to have come into force on April 13, 2011.

Part 9: Miscellaneous Provisions

77(15)      Subsection 69(2) is deemed to have come into force on January 1, 2011.

77(16)      Subsection 69(3) is deemed to have come into force on April 1, 2008.

77(17)      Section 71 comes into force on the day that section 4 of The Polar Bear Protection Amendment Act (International Polar Bear Conservation Centre), S.M. 2010, c. 48, comes into force.

77(18)      Section 72 is deemed to have come into force on April 1, 2011.

77(19)      The Schedules to this Act, enacted by sections 75 and 76, come into force as provided in the coming into force section at the end of each Schedule.


SCHEDULE A

THE EMISSIONS TAX ON COAL ACT

TABLE OF CONTENTS

Section

1   Definitions

2   Administration and enforcement

3   Emissions tax on coal

4   Regulations

5   Consequential amendment

6   C.C.S.M. reference

7   Coming into force

THE EMISSIONS TAX ON COAL ACT

Definitions

1           The following definitions apply in this Act.

"director" means the Deputy Minister of Finance or an Assistant Deputy Minister of Finance. (« directeur »)

"minister" means the Minister of Finance. (« ministre »)

Administration and enforcement

2           Part I of The Tax Administration and Miscellaneous Taxes Act applies to the administration and enforcement of this Act.

Emissions tax on coal

3(1)        Every person who, in any calendar year, purchases more than one tonne of coal for use in Manitoba must, before March 1 of the next year,

(a) file with the director an information return in a form approved by the minister or the director; and

(b) pay to the minister an emissions tax on all the coal purchased by the person in that year for use in Manitoba, rounded to the nearest 1/10 of a tonne, calculated using

(i) the applicable rate or rates set out in subsection (2), unless a different rate is prescribed by regulation for the grade of coal purchased or the use for which it is purchased, or

(ii) the applicable rate or rates prescribed by regulation.

Rates of tax

3(2)        Subject to subsection (1) and the regulations, the tax rates for the different grades of coal (which are roughly equivalent to $10 per tonne of CO2 equivalent emissions) are as follows:

(a) for bituminous coal, $22.57 per tonne;

(b) for sub-bituminous coal, $17.37 per tonne;

(c) for lignite, $14.27 per tonne;

(d) for any other grade of coal, including anthracite, $23.97 per tonne.

Tax payable at highest rate

3(3)        If a purchaser is not able to satisfy the director that a lower rate applies to the purchased coal, the highest rate applies in determining the tax payable on that coal.

Regulations

4(1)        The Lieutenant Governor in Council may make regulations

(a) prescribing grades of coal that differ from those listed in subsection 3(2);

(b) prescribing a rate of emissions tax for any grade of coal that does not exceed the equivalent of $10 per tonne of CO2 equivalent emissions for that grade of coal;

(c) prescribing different uses of coal for any grade of coal and prescribing a rate of emissions tax for each prescribed use that does not exceed the emissions tax rate for that grade of coal as determined under clause (b) or under subsection 3(2);

(d) requiring all or any part of the tax payable under section 3 to be paid in instalments, and prescribing the due dates for those instalments and a formula or other method for determining the amounts of the instalments;

(e) respecting any other matter the Lieutenant Governor in Council considers necessary or advisable for the administration of this Act.

Effective date

4(2)        A regulation under this section may be made retroactive to the extent the Lieutenant Governor in Council considers it necessary to implement or give effect to

(a) a tax measure included in a budget presented to the Legislative Assembly; or

(b) an amendment to this Act.

Consequential amendment, C.C.S.M. c. T2

5           The definition "tax Act" in subsection 1(1) of The Tax Administration and Miscellaneous Taxes Act is amended by adding the following after clause (a.1):

(a.2) The Emissions Tax on Coal Act;

C.C.S.M. reference

6           This Act may be referred to as chapter E90 of the Continuing Consolidation of the Statutes of Manitoba.

Coming into force

7           This Act comes into force on January 1, 2012.


SCHEDULE B

THE POVERTY REDUCTION STRATEGY ACT

TABLE OF CONTENTS

Section

1   Definitions

2   Poverty reduction and social inclusion strategy

3   Committee on poverty reduction and social inclusion

4   Role of strategy in annual budget process

5   Annual report

6   Regulations

7   C.C.S.M. reference

8   Coming into force

THE POVERTY REDUCTION STRATEGY ACT

Definitions

1           The following definitions apply in this Act.

"committee" means the committee on poverty reduction and social inclusion established in section 3. (« comité »)

"minister", except in clause 3(1)(a), means the minister appointed by the Lieutenant Governor in Council to administer this Act. (« ministre »)

Poverty reduction and social inclusion strategy

2(1)        The government must

(a) implement a long-term strategy to reduce poverty and increase social inclusion across Manitoba;

(b) establish or adopt poverty and social inclusion indicators to be used in measuring the progress of the strategy; and

(c) provide annual reports to the public on the progress of the strategy in accordance with subsection 5(4).

Strategy to address multiple areas of need

2(2)        The strategy must recognize that poverty has multiple causes, and be designed to address various needs, including the need for

(a) quality, accessible education that develops knowledge and skills;

(b) training that prepares persons for employment;

(c) employment opportunities;

(d) income supports for persons who are unable to fully participate in the labour market;

(e) affordable housing;

(f) supportive and safe communities; and

(g) supports for strong and healthy families.

Targeted strategy

2(3)        The strategy must

(a) recognize that certain groups face a higher risk of poverty and social exclusion; and

(b) ensure that programs and initiatives to reduce poverty and increase social inclusion are accessible to all persons who require them.

Strategy to be co-ordinated

2(4)        The strategy must be designed to ensure that programs and initiatives to implement the strategy are co-ordinated across the government.

Review

2(5)        The strategy must be reviewed and updated at least once every five years.

Strategy to be publicly available

2(6)        The minister must ensure that a detailed description of the strategy is published on a government website.

Committee on poverty reduction and social inclusion

3(1)        A committee on poverty reduction and social inclusion, which may be referred to as the "All Aboard Committee", is hereby established, and is to consist of

(a) those ministers who are responsible for policies, programs or services that affect poverty reduction and social inclusion, as determined by the Lieutenant Governor in Council;

(b) one member appointed by the Lieutenant Governor in Council from the members of the Premier's Advisory Council on Education, Poverty and Citizenship; and

(c) three additional persons appointed by the Lieutenant Governor in Council, based on recommendations from the minister after consulting with the United Way of Winnipeg and any other groups that the minister considers appropriate for this purpose.

Responsibilities

3(2)        The responsibilities of the committee include

(a) reviewing and providing advice to the Executive Council on

(i) the content of the poverty reduction and social inclusion strategy,

(ii) poverty and social inclusion indicators, and

(iii) proposed programs, policies or initiatives;

(b) monitoring the implementation of the strategy;

(c) ensuring that programs, policies and initiatives of the government to reduce poverty and increase social inclusion are co-ordinated and consistent with the strategy; and

(d) facilitating community involvement in the development and implementation of the strategy.

Co-chairs

3(3)        The Lieutenant Governor in Council is to designate two members of the committee as its co-chairs.

Meetings

3(4)        The committee is to meet at least four times each year, at the call of the co-chairs.

Role of strategy in annual budget process

4           For each fiscal year, the government must

(a) take the poverty reduction and social inclusion strategy into account when preparing the budget for that fiscal year;

(b) prepare a statement that

(i) summarizes the strategy and sets out the budget measures that are designed to implement the strategy, and

(ii) sets out the poverty reduction and social inclusion indicators prescribed by regulation that will be used to measure the progress of the strategy; and

(c) table the statement referred to in clause (b) in the Legislative Assembly at the time of tabling the budget for that fiscal year.

Annual report

5(1)        Within six months after the end of each fiscal year, the minister, in consultation with the committee, must prepare a report that

(a) reviews the implementation of the poverty reduction and social inclusion strategy for that year; and

(b) evaluates the progress of the strategy using the poverty reduction and social inclusion indicators prescribed by regulation.

Report to be tabled

5(2)        The minister must table the report in the Legislative Assembly upon completing the report or, if the Assembly is not sitting at that time, within 15 days after the next sitting begins.

Referral to standing committee

5(3)        When the report is tabled in the Assembly, it stands referred to the Standing Committee of the Assembly on Social and Economic Development. The committee must begin considering the report within 60 days after it is tabled in the Assembly.

Publication on website

5(4)        When the report has been tabled in the Assembly, the minister must ensure that the report is published on the website on which the description of the strategy is published under subsection 2(6).

Regulations

6           The Lieutenant Governor in Council may make regulations

(a) prescribing indicators of poverty reduction and social inclusion for the purposes of this Act;

(b) respecting any matter necessary or advisable to carry out the purposes of this Act.

C.C.S.M. reference

7           This Act may be referred to as chapter P94.7 of the Continuing Consolidation of the Statutes of Manitoba.

Coming into force

8           This Act comes into force on the day it receives royal assent.

Explanatory Note

This Bill implements measures in the 2011 Manitoba Budget, and makes various other amendments to tax and financial legislation.

Budget Measures

Tax measures announced in the Budget and implemented by this Bill include the following:

Corporation Capital Tax

  • exempting from corporation capital tax a bank, loan corporation, trust corporation or trust and loan corporation with less than $4 billion of taxable paid up capital (s. 3)

Income Tax

  • increasing personal income tax credits by increasing the basic personal amount, the spousal amount and the eligible dependant amount (s. 15(1) to (3))
  • providing a new children's arts and cultural activity tax credit (s. 14(1) and 15(5))
  • increasing education property tax credits (s. 16)
  • increasing the primary caregiver tax credit (s. 17(2))
  • expanding and clarifying the fertility treatment tax credit (s. 18)
  • extending the manufacturing investment tax credit and enabling a taxpayer to renounce the credit (s. 20)
  • providing a new "Neighbourhoods Alive!" tax credit for corporations that contribute to the development of new social enterprises (s. 23)
  • extending the co-op education and apprenticeship tax credits (s. 24(1))
  • extending the odour-control tax credit and enabling a taxpayer to renounce the credit (s. 25(1)(b) and 25(5))
  • increasing the green energy equipment tax credit for geothermal heat pumps, and enabling the tax credit for manufacturers to be expanded to include a credit for green energy transmission equipment (s. 26)
  • extending the book publishing tax credit, expanding it to include labour costs related to the publishing of electronic books and increasing the credit for printing expenses related to books printed on paper with at least 30% recycled content (s. 27)
  • providing a new cultural industries printing tax credit for printing costs incurred in the production of eligible books (s. 14(3) and 28)
  • extending the mineral exploration tax credit (s. 29)
  • extending the community enterprise development tax credit (s. 30)

Retail Sales Tax

  • allowing tax to be applied at a daily rate, rather than a monthly rate, for temporary use of property in Manitoba for less than 16 days in a month (s. 41(2))
  • exempting kiln strips used in drying lumber (s. 43(1)(b))
  • expanding the exemption for straw pellets used for heating and cooking to include other biomass materials (s. 43(1)(d))
  • expanding the exemptions for municipalities to include

–   flood protection services and materials (s. 43(1)(e) and (f))

–   water-softener salts for water for sale (s. 43(1)(f))

Land Transfer Tax

  • expanding the exemption for transfers between common-law partners (s. 61)

Tobacco Tax

  • increasing the tax rates on tobacco as announced in the Budget (s. 64)

School Tax

  • increasing the farmland school tax rebate to 80% (s. 73 and 74)

Emissions Tax on Coal

  • imposing a new emissions tax on coal payable by those who purchase more than one tonne of coal in a year (s. 75 and Sch. A)

Other Amendments

Other amendments to tax legislation include the following:

  • housekeeping amendments to The Corporation Capital Tax Act (s. 2 and 4)
  • amendments to The Fuel Tax Act to define "dwelling unit" and add an exemption for bulk fuel exports (s. 6 and 7)
  • amendments to The Health and Post Secondary Education Tax Levy Act

–   to clarify the meaning of "associated" (s. 9)

–   to clarify rules for determining whether an employer has a permanent establishment in Manitoba (s. 10)

–   to clarify the rules for determining the tax payable in respect of remuneration paid in relation to the operation of commercial trucks on interjurisdictional trips (s. 11)

  • various amendments to The Income Tax Act, including amendments

–   to clarify the description of B in the formula for the fitness tax credit (s. 15(4))

–   in the formula for the transferable tuition and education amount, to reflect the 2009 change in the tax rate for the lowest income bracket (s. 15(6))

–   to update several definitions relating to the primary caregiver tax credit (s. 17(1))

–   in the provisions for the manufacturing investment tax credit and the research and development tax credit, to properly take into account the effect of credits deducted in other years (s. 20(1)(a) and 21(1))

–   in the provisions for the co-op education and apprenticeship tax credits, to correct cross-references and repeal the provision that enables tax exempt entities to apply for a refund (s. 24(2) and (3))

–   in the provisions for the odour-control tax credit, to enact provisions previously prescribed by regulation (s. 25(1) to (3))

–   to provide a new employee share purchase tax credit for employee purchases of shares through a registered employee share ownership plan (s. 14(2) and 31)

  • a repeal of three tax credit regulations that have been incorporated in The Income Tax Act (s. 32)
  • various amendments to The Retail Sales Tax Act, including amendments

–   to expand the meaning of "closely related" (s. 40(a))

–   to allow for the retroactive application of a reduced rate for certain uses of electricity (s. 41(1))

–   respecting the tax reduction on a motor vehicle purchased within six months before or after selling another one (s. 42)

–   to clarify certain tax exemptions (s. 43(1))

–   to broaden the exemption for food and beverages sold at certain recreational camps (s. 43(2) and 45)

–   to clarify and expand the exemptions for certain services (s. 44)

–   to clarify the entitlement to a refund in respect of a manure lagoon liner (s. 46(2))

–   to include in the Act certain refund provisions that are currently set out in regulations (s. 46(4))

  • various amendments to The Tax Administration and Miscellaneous Taxes Act, including amendments

–   respecting the designation of tax officers and the non-application of restrictions to tax officers and peace officers engaged in tax administration or enforcement (s. 48 and 49)

–   respecting the time for filing periodic returns when they are due on a weekend or a holiday (s. 50)

–   respecting permits and offences relating to the marking and stamping of tobacco products (s. 51 and 53)

–   respecting the liability of a transferee after a non-arm's length transfer of property made to avoid the payment of a tax debt (s. 55)

–   enabling a refund to be applied to the payment of an amount owing in respect of taxes, interest or penalties under any tax legislation (s. 57)

–   respecting penalties for various offences (s. 59 and 60)

This Bill makes corrrections to provisions in The City of Winnipeg Charter relating to the taxation of electricity and gas (s. 69).

It also amends The Enforcement of Canadian Judgments Act to clarify its application to Canadian tax judgments (s. 70).

Municipal tax and revenue amendments

This Bill amends The Municipal Assessment Act by adding an exemption for the conservation centre under The Polar Bear Protection Act (s. 71).

It also amends The Municipal Revenue (Grants and Taxation) Act to ensure that the amount to be included in the annual estimates of expenditure for municipal grants is not less than the greater of

  • an amount determined with reference to estimated income tax revenue and estimated gasoline and motive fuel sales for the year, and
  • 1/7 of the estimated retail sales tax revenue for the year (s. 34 to 36)

Poverty Reduction Strategy

The Poverty Reduction Strategy Act requires the government to implement a long-term strategy to reduce poverty and increase social inclusion in Manitoba. The government must take the strategy into account when preparing the annual budget, and table a document in the Legislative Assembly that explains how the strategy is implemented by the budget. In addition, the government must report annually on the progress of the strategy, as measured by poverty indicators adopted by regulation (s. 76 and Sch. B).

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