Manitoba's 2019 Budget: Getting the Job Done, was presented on March 7, 2019 by Finance Minister Scott Fielding. Budget 2019 projects a deficit of $360 million for 2019-20. It reduces the Retail Sales Tax (RST) rate to 7% and makes several other minor tax changes, the highlights of which are provided below. Subscribers to the Manitoba and Saskatchewan Tax Reporter will have received the Budget Dispatch in the News Tracker email for March 7. The Dispatch is also available on IntelliConnect.
Reduction to RST rates
The general retail sales tax rate will be reduced from 8% to 7%, effective July 1, 2019. Similarly, the rates applicable to mobile homes, electricity for certain uses, and the prorate vehicle tax rates, are subject to reductions too. However, there will be no change in the 1.4% rate for home heating, heating or cooling farm buildings and operating grain dryers.
Business income tax measures
For qualifying property acquired after June 30, 2019, the refundable portion of the Manufacturing Investment Tax Credit will be reduced from 8% to 7%, but the 1% non-refundable portion will not change.
The small business venture capital tax credit will be extended 3 years to December 31, 2022.
The cultural industries printing tax credit will be extended 1 year to December 31, 2020.
Also, an annual tax credit cap of $1.1 million per taxpayer will apply beginning in 2019.
The film and video production tax credit will be made permanent and will be provided with additional funding. The Book Publishing Tax Credit will be extended 5 years to December 31, 2024.
Personal income tax measures
Primary Caregiver Tax Credit provisions are being amended to align the registration due date with the personal income tax return filing due date. Instead of having to register by December 31, caregivers will now have until April 30 of the following year.
Manitoba will also introduce amendments to harmonize with recent federal tax changes with respect to the revised TOSI rules and income security benefits paid to veterans.