June 7, 2011
Legislation Introduced Which Would Move Manitoba Familes Forward with Tax Cuts: Wowchuk
Finance Minister Rosann Wowchuk today introduced the Budget Implementation and Tax Statutes Amendment Act which would implement Budget 2011 and provide $65 million in tax cuts for families and businesses this year.
“We have stayed on track with our five-year economic plan to ensure families have access to vital front-line services and also deliver significant tax savings for families,” said Wowchuk. “This year, tax cuts will save a family of four $212 and by 2014 that same family of four will save $374 a year.”
The minister noted the bill would deliver on nearly $110 million in new tax reductions once they are fully implemented and would freeze or reduce major taxes for the 12th consecutive year. Tax reductions proposed for families and property owners include:
- Increasing the basic Education Property Tax Credit by $50 to $700, which would save renters and homeowners an extra $16 million this year.
- Increasing basic personal income tax exemptions by $1,000 over four years, starting with $250 this year. By 2014, an additional 22,000 Manitobans would no long pay Manitoba income tax.
- Implementing a new Children’s Arts and Cultural Activity Tax Credit, to help parents introduce their children to activities such as art, music, drama, language instruction, environmental activities and personal tutoring.
- Increasing the maximum seniors’ Education Property Tax Credit by $150 to $950 in 2011. This credit would rise by $75 to $1,025 in 2012 and by another $75 to $1,100 in 2013.
- Increasing the Primary Caregiver Tax Credit by 25 per cent to a maximum of $1,275 to assist families caring for elderly Manitobans and other loved ones.
- Increasing the Farmland School Tax Rebate to 80 per cent from 75 per cent, which would save farmers an additional $2 million this year for a total of over $35 million annually.
Wowchuk noted the legislation would complement the province’s ALL Aboard poverty reduction strategy by ensuring poverty reduction is taken into account during ongoing budget planning. The strategy focuses on helping families connect with jobs and outlines the need for a co-ordinated, measureable strategy to deal with issues of poverty.
This legislation would guarantee that provincial revenue sharing with municipalities will be no less than one-seventh of provincial sales tax revenue.
The minister noted the provincial small business income tax and the general corporation capital tax were completely eliminated this year. Other tax reductions for business would include:
- Increasing the Green Energy Equipment Tax Credit to 15 per cent from 10 for installations of geothermal heating systems.
- Creating a new Cultural Industries Printing Tax Credit to provide a 15 per cent refundable credit to support Manitoba-based printers.
- Setting up a new Neighbourhoods Alive! Tax Credit to support partnerships between businesses and charitable community-based organizations to create jobs for people facing barriers to employment.
- Providing a Capital Tax Exemption for small banks to attract and encourage the expansion of small, innovative financial institutions in Manitoba.
- Expanding the Book Publishers Tax Credit to include eligible costs related to publishing an electronic or digital version of eligible literary works. The bonus would be increased to 15 per cent for publications printed on recycled paper.
- Introducing a new employee share purchase plan tax credit to help business succession planning.
The proposed legislation covers a number of tax initiatives including the extension of the Manufacturing Investment Tax Credit, Mineral Exploration Tax Credit, the Community Enterprise Development Tax Credit, the Odour Control Tax Credit and the Co-op Education and Apprenticeship tax credits. Tobacco tax rates would increase by two cents per cigarette and a new emissions tax on coal would take effect next year.
Bill 51 also includes a number of housekeeping amendments to the Fuel Tax Act, the Retail Sales Tax Act, the Tax Administration and Miscellaneous Taxes Act and the Tobacco Tax Act, which would enhance various enforcement provisions to ensure all taxpayers are treated equally and fairly, as well as modernizing the legislation, said Wowchuk.
"We have listened to Manitobans who want to ensure services are available to their families while providing for a healthy economy,” the minister said. “We have struck that balance with this budget and this proposed legislation will ensure we can continue to move Manitoba forward.”
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