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The Muncipal Revenue (Grants and Taxation) Act
This is an unofficial archived version.
This version was current from April 1, 2011 to June 15, 2011.

Note: It does not reflect any retroactive amendment enacted after June 15, 2011.
To find out if an amendment is retroactive, see the coming-into-force provisions
at the end of the amending Act.

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C.C.S.M. c. M265

The Muncipal Revenue (Grants and Taxation) Act

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

PART 1

MUNICIPAL TAXATION

Definitions

1           In this Part,

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

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

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

2           Repealed.

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

2.1         Repealed.

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

Municipality may impose taxes

3           The council of a municipality or in the case of a local government district, the resident administrator thereof, may pass by-laws imposing such forms of taxes as it deems advisable within

the municipality and without restricting the generality of the foregoing, it may impose a tax on persons in the municipality who purchase or consume motel and hotel accommodation, or meals at a restaurant or dining room, or liquor, or on the transfer of land.

Contents of by-law

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

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

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

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

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

and may prescribe or authorize

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

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

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

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

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

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

Agreement to collect tax

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

PART 2

GRANTS TO MUNICIPALITIES

Definitions

6           The following definitions apply in this Part.

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

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

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

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

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

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

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

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

S.M. 2005, c. 40, s. 69; S.M. 2010, c. 29, Sch. B, s. 37.

Building Manitoba Fund established

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

Credit to fund for 2005-06 fiscal year

7(2)        There shall be credited to the fund for the fiscal year ending on March 31, 2006, out of the sums appropriated for grants to municipalities for that year, the sum of $118,709,100.

Annual credit to fund

7(3)        There shall be credited to the fund in each fiscal year beginning after 2005 the sums appropriated for grants to municipalities under this Part for the fiscal year.

Grants charged to fund

7(4)        There shall be charged to the fund in each fiscal year the grants paid or distributed in that year to municipalities under section 9.

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

Estimates of expenditure for grants to municipalities

8(1)        Subject to subsections (2) and (3), the government's estimates of expenditure for a fiscal year beginning after 2005 must include, as a sum to be voted for grants to municipalities under this Part in that year, an amount not less than the total of the following amounts:

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

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

(c) 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.

Deferral for anticipated reductions

8(2)        If the amount to be included under subsection (1) for a fiscal year is greater than the sum voted for grants to municipalities under this Part for the immediately preceding fiscal year and the Minister of Finance anticipates a reduction in the amount to be included for a future year, the government may defer the inclusion of all or part of the excess to the future year to offset the anticipated reduction in that year.

Adjustment for decrease in revenue

8(3)        If the Minister of Finance, before tabling the government's estimates of expenditure for a fiscal year in the Legislative Assembly, determines that

(a) the number of taxable litres of gasoline or motive fuel sold in the immediately preceding fiscal year; or

(b) the government's revenue under The Income Tax Act for the preceding fiscal year;

is significantly lower than estimated for the preceding fiscal year under subsection (1), the Minister of Finance may reduce the amount to be included under that subsection to reflect the reduction in revenue, except to the extent that the reduction is reflected in an adjustment made under subsection 9(3) in the preceding year.

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

Allocation and distribution of grants

9(1)        Subject to subsection (1.1), the manner in which the amount credited to the fund in a fiscal year is to be allocated and paid or distributed among municipalities and other areas of the province is to be determined by the Lieutenant Governor in Council.

Grants for public transit systems

9(1.1)      The grants under subsection (1) must include for each municipality that operates a regular or rapid public transit system a transit operating grant in an amount that is not less than 50% of the annual operating cost of the transit system in excess of its annual operating revenue, as determined by the Minister of Local Government in consultation with the municipality.

Conditional grants

9(2)        The Lieutenant Governor in Council may, by order or by regulation, impose terms and conditions on grants to be paid or distributed under this section.

Adjustments for increase or decrease in revenue

9(3)        If in any fiscal year the Minister of Finance

(a) determines that the number of taxable litres of gasoline or motive fuel sold in the immediately preceding fiscal year, or the government's revenue under The Income Tax Act for the preceding fiscal year, is significantly higher or lower than estimated for that fiscal year under subsection 8(1) and the increase or decrease has not been reflected in

(i) an adjustment under this subsection in the preceding year, or

(ii) the amount included under subsection 8(1) in the estimates of expenditure for the current fiscal year; or

(b) anticipates that the number of taxable litres of gasoline or motive fuel sold in the current fiscal year, or the government's revenue under The Income Tax Act for the current fiscal year, will be significantly higher or lower than estimated for that fiscal year under subsection 8(1);

the Lieutenant Governor in Council may adjust the amounts allocated or to be allocated to municipalities for the current fiscal year to reflect that increase or decrease.  The amount of any increase may be paid out of the Consolidated Fund from money authorized for the purpose by or under an Act of the Legislature.

Prior rights to grants or recoveries extinguished

9(4)        On the coming into force of this Part, the following rights and entitlements are extinguished:

(a) any right or entitlement of a municipality, or of the municipalities as a group, to an allocation or distribution of tax revenue under section 2 or 2.1 of this Act as it read before this Part came into force;

(b) any right or entitlement of the government to recover, by deduction, set-off or in any other manner, any amounts allocated or distributed to municipalities under section 2 of this Act before this Part came into force.

S.M. 2005, c. 40, s. 69; S.M. 2008, c. 17, s. 24; S.M. 2010, c. 33, s. 84.

Regulations

10          The Lieutenant Governor in Council may make regulations

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

(b) establishing reporting requirements for municipalities respecting grants received by them;

(c) providing authority to investigate, inspect or audit any matter pertaining to a grant made or to be made to a municipality under this Part;

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

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

PART 3

C.C.S.M. REFERENCE

C.C.S.M. reference

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

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