Fiscal Summary of Measures

		2022/23	Full Year
		millions of dollars	millions of dollars
Education Property Tax Measure
Education Property Tax Rebate – increased		-103.4	-206.7
Existing education property tax credits and rebates – reduced		32.7	65.2
Personal Measure
New Renters Tax Credit – introduced		-	-
Business Measures
Health and Post-Secondary Education Tax Levy – enhanced		-2.2	-8.9
Fuel Tax – adjusted		-0.2	-0.2
		-2.4	-9.1
Fee Measure
Vehicle Registration Fees – reduced		-11.0	-15.0
Tax Credit Extensions
Community Enterprise Development Tax Credit – made permanent		-	-
Small Business Venture Capital Tax Credit – made permanent		-	-
		-	-
			-
Total Fiscal Impact		-84.1	-165.6

Note: A negative amount is a cost to government and a benefit to taxpayers.

Education Property Tax Measure

Education Property Tax Rebate

2022/23 fiscal impact: -$103.4 million

Manitoba will continue the phase-out of education property taxes, as was committed to under the $2,020 Tax Rollback Guarantee, by increasing the Education Property Tax Rebate.

The Rebate for residential and farm properties will increase from 25 per cent in 2021 to 37.5 per cent in 2022 and
50 per cent in 2023, while other properties will continue to get Rebates of 10 per cent. This represents total Rebates equal to $246.5 million in 2021, $349.9 million in 2022 and $453.2 million in 2023.

Total Rebates for each property category in 2021, 2022 and 2023 are shown in the table below:

Property Type	Total Rebates ($M)
	2021	2022	2023
Residential	179.3	269.0	358.6
Farm	27.4	41.1	54.8
Other	39.8	39.8	39.8
TOTAL	246.5	349.9	453.2

As a result of the increases, Rebates for homeowners will increase from an average of $387 in 2021 to $581 in 2022 and to $774 in 2023.

Rebates are calculated based on the gross education property taxes on property tax statements, including both the school division special levy and the education support levy.

• Owners of residential and farm properties will receive a 37.5 per cent rebate of the school division special levy payable in 2022 and 50 per cent in 2023.

Illustrative school tax portion of a 2022 residential property tax statement:

• Owners of other properties, such as businesses, industrial, railway and institutions, will receive a 10 per cent rebate in 2022 and in 2023.

Illustrative school tax portion of a 2022 business property tax statement:

Property owners will continue to pay education property taxes but will receive the Education Property Tax Rebate cheque in the same month that municipal property taxes are due. No application will be necessary by property owners as the Education Property Tax Rebate will be automatically sent by the province. Farm property owners will still be required to apply for the Farmland School Tax Rebate.

The phase-out continues to include a freeze on total education property tax revenue at the 2020 amount.

Education Property Tax Credits and Rebates

2022/23 fiscal impact: $32.7 million

While all properties owners who are subject to education property taxes will receive the Education Property Tax Rebate, some owners are also eligible for other education property-tax related credits and rebates. The Education Property Tax Credit/Advance, the Seniors Education Property Tax Credit, the Seniors School Tax Rebate are available to Manitoba residents on their principal residences. The Farmland School Tax Rebate is available to Manitoba residents on farmland but not farm buildings.

In order to ensure the phase out of education property taxes will proceed at the same pace for all property owners, existing education property tax credits and rebates are automatically adjusted in line with increases to the Education Property Tax Rebate, as was done in 2021.

	2021	2022	2023
Education Property Tax Credit and Advance	Up to $525	Up to $438	Up to $350
Seniors School Tax Rebate	Up to $353 minus 1.5% on family net income over $40,000	Up to $294 minus 1.25% on family net income over $40,000	Up to $235 minus 1.0% on family net income over $40,000
Seniors Education Property Tax Credit	Up to $300 minus 0.75% of family net income	Up to $250 minus 0.625% of family net income	Up to $200 minus 0.5% of family net income
Farmland School Tax Rebate	Up to 60% of school tax to a maximum of $3,750	Up to 50% of school tax to a maximum of $3,125	Up to 40% of school tax to a maximum of $2,500

The following table provides illustrative examples of the impact of Rebate changes from 2021 to 2023.

It shows that a Manitoban who qualifies for both the Education Property Tax Credit/Advance and Education Property Tax Rebate on their principal residence will experience the same proportional benefits as another residential property owner who does not qualify for the Education Property Tax Credit/Advance.

The table also shows that a Manitoban who qualifies for both the Farmland School Tax Rebate and Education Property Tax Rebate on farmland will experience the same proportional benefits on their farm buildings as another property owner who may not be a resident of Manitoba.

2020	Principal Residence	Other Residence		2020	Farm Land	Farm Buildings
Gross School Tax	$ 1,550	$ 1,550		Gross School Tax	$ 5,600	$ 5,600
Property Tax Credit	$ 700	$ 0		Farmland Rebate	$ 4,480
Net School Tax	$ 850	$ 1,550		Net School Tax	$ 1,120	$ 5,600
Total Credits and Rebates	$ 700	$ 0		Total Credits and Rebates	$ 4,480	$ 0
2021				2021
Gross School Tax	$ 1,550	$ 1,550		Gross School Tax	$ 5,600	$ 5,600
Rebate	$ 388	$ 388		School Tax Rebate	$ 1,400	$ 1,400
Property Tax Credit	$ 525	$ 0		Farmland Rebate	$ 3,360
Net School Tax	$ 637	$ 1,162		Net School Tax	$ 840	$ 4,200
Change from 2020	-25%	-25%		Change from 2020	-25%	-25%
Total Credits and Rebates	$ 913	$ 388		Total Credits and Rebates	$ 4,760	$ 1,400
2022				2022
Gross School Tax	$ 1,550	$ 1,550		Gross School Tax	$ 5,600	$ 5,600
Rebate	$ 581	$ 581		School Tax Rebate	$ 2,100	$ 2,100
Property Tax Credit	$ 438	$ 0		Farmland Rebate	$ 2,800
Net School Tax	$ 531	$ 969		Net School Tax	$ 700	$ 3,500
Change from 2020	-37.5%	-37.5%		Change from 2020	-37.5%	-37.5%
Total Credits and Rebates	$ 1,019	$ 581		Total Credits and Rebates	$ 4,900	$ 2,100
2023				2023
Gross School Tax	$ 1,550	$ 1,550		Gross School Tax	$ 5,600	$ 5,600
Rebate	$ 775	$ 775		School Tax Rebate	$ 2,800	$ 2,800
Property Tax Credit	$ 350	$ 0		Farmland Rebate	$ 2,240
Net School Tax	$ 425	$ 775		Net School Tax	$ 560	$ 2,800
Change from 2020	-50%	-50%		Change from 2020	-50%	-50%
Total Credits and Rebates	$ 1,125	$ 775		Total Credits and Rebates	$ 5,040	$ 2,800

The Rebate, property tax credits and Farmland School Tax Rebate are fully funded by the provincial government through general revenues.

For more information, please contact Location B, page 178.

Personal Measure

New Residential Renters Tax Credit

2022/23 fiscal impact: nil

Effective starting in the 2022 taxation year, Manitoba will replace the renters component of the Education Property Tax Credit with a new renters tax credit that will apply to renters of residential properties. The new credit will fix the annual claim amount at $525, the same amount as in 2021 under the previous tax credit program. The new credit will no longer be calculated based on 20% of annual rents paid, and will instead be calculated as a fixed monthly maximum claim amount, based on the number of months spent renting in a given year. The monthly amount will be $43.75 and will not be income tested. About 45,000 Manitobans who receive non-EIA Rent Assist or who live in social housing will be newly eligible to claim the credit.

The following table shows the maximum credit available for different renters under the Education Property Tax Credit in 2021 versus the new Residential Renters Tax Credit in 2022.

Tax Credits for Renters
	Non-EIA Rent Assist	Social Housing	Other Renters
2021 (Education Property Tax Credit)			Yes ($525)
2022 (Renters Tax Credit)	Yes ($525)	Yes ($525)	Yes ($525)

For more information, please contact Location B, page 178.

Business Measures

Health and Post-Secondary Education Tax Levy

2022/23 fiscal impact: -$2.2 million

Effective January 1, 2023, the exemption threshold is raised from $1.75 million to $2.0 million of annual remuneration. In addition, the threshold below which employers pay a reduced rate is raised from $3.5 million to $4.0 million. Both thresholds will be 60% higher than in 2020.

Increases to the thresholds primarily benefit the following sectors: construction, manufacturing, retailers, wholesalers, professionals and restaurants.

The new higher thresholds will benefit approximately 970 Manitoba employers, including exempting approximately 180 Manitoba employers. These changes further build upon the increases to the levy thresholds announced in Budget 2020 and Budget 2021. In 2020, the exemption threshold was $1.25 million and the threshold below which employers pay a reduced rate was $2.5 million, both of which had been in place since 2008.

For more information, please contact Location D, page 178.

Small Business Venture Capital Tax Credit

2022/23 fiscal impact: nil

Enhancements to the Small Business Venture Capital Tax Credit will be made to benefit Manitobans participating in venture capitals funds, thereby improving access to capital and supporting entrepreneurs.

Fuel Tax Exemption for Peat Harvesting Equipment

2023/23 fiscal impact: -$0.2 million

Effective May 1, 2022, fuel used in off-road operation of peat harvesting equipment is exempt from Manitoba’s Fuel Tax.

Marked fuel can be currently purchased tax exempt when used in off-road machinery and equipment utilized by the farming, mining, commercial logging, commercial fishing and trapping industries. Extending this exemption to peat harvesting equipment supports this industry in Manitoba and is consistent with tax treatment in the majority of Canadian jurisdictions.

For more information, please contact Location D, page 178.

Fee Measure

Reduction in Vehicle Registration Fees

2022/23 fiscal impact: -$11 million

Vehicle registration fees for most non-commercial vehicles will be reduced by a further $10 starting with renewals after June 30, 2022. The vehicle registration fee reduction applies to most types of non-commercial vehicles, such as passenger vehicles, trucks, trailers, and motorcycles/mopeds. This measure completes the government’s commitment to roll back the 30 per cent increase to vehicle registration fees by 2023 a year early, following reductions in Budget 2020 and Budget 2021.

For more information, please contact Location A, page 178.

Extensions to Existing Tax Credits

The Community Enterprise Development Tax Credit , scheduled to expire on December 31, 2022, is made permanent. This tax credit provides a refundable Manitoba tax credit of up to 45% to individuals and corporations who acquire equity capital in community-based enterprises in Manitoba.

The Small Business Venture Capital Tax Credit , scheduled to expire on December 31, 2022, is made permanent. This tax credit provides a non-refundable Manitoba tax credit of up to 45% to individuals and corporations who acquire equity capital in eligible Manitoba enterprises.

For more information, please contact Location C, page 178.

Administrative Tax Measures

Tax on Split Income

Based on an issue identified by the federal government with provincial income tax acts, a minor change will be made to eliminate potential confusion regarding how federal provisions respecting tax on split income are to apply to individuals in Manitoba.

Research and Development Tax Credit

A change will be made to align with extended filing deadlines made by order under the Income Tax Act (Canada) in response to COVID-19.

Statutory Limitations

Changes will establish a statute of limitations on audits and requests for change by taxpayers on taxes collected and administered by Manitoba Finance.

Film and Video Production Tax Credit

Minor changes will be made to confirm that film producers are able to get advance credits prior to a film being completed provided that proper documentation is submitted.

Tax Credit Validation

An extended service agreement will be entered into with the Canada Revenue Agency to undertake increased scrutiny and validation of Manitoba tax credits, following unusually high and potentially improper claims for certain credits. This builds upon work done in 2021 respecting 2020 tax returns where unusually high claims for some tax credits were found to be invalid.

For more information, please contact Location D, page 178.

$2,020 Tax Rollback Guarantee

The $2,020 Tax Rollback Guarantee announced in 2019 promised to save Manitobans an average of $2,020 in tax over four years by removing unnecessary taxes and fees so people can keep more of their hard-earned money. Budget 2021 projected that this commitment would be met one year early, by 2022/23, and Budget 2022 confirms this.

The table below provides a current status update on all measures that have contributed to meeting this commitment and the total annual savings resulting from each:

Tax Measure	Implementation Date	Total Annual Savings ($M)
Indexing of Basic Personal Amount and Personal Income Tax Brackets (cumulative)	January 2017	161.1
Retail Sales Tax Rate Reduction from 8% to 7%	July 2019	176.0
Retail Sales Tax Exemption – Preparing Wills	January 2020	1.0
Vehicle Registration Fee Reduction	Starting July 2020 (completed in Budget 2022)	45.0
Retail Sales Tax Exemption – Home Insurance	July 2020	37.5
Retail Sales Tax Exemption – Preparing Personal Income Tax Returns	October 2020	5.5
Elimination of Probate Fees	November 2020	7.8
Retail Sales Tax Exemption – Personal services	December 2021	8.0
Phasing out of education property taxes net of changes to existing credits (in 2023)	Starting 2021	326.5

Contacts For Further Information

A) Manitoba Public Insurance

Contact Centre

Telephone 204-985-7000

Toll-free 1-800-665-2410

B) Manitoba Tax Assistance Office

Manitoba Finance

Telephone 204-948-2115

Toll-free 1-800-782-0771

e-mail: [email protected]

C) Economic Programs Branch

Manitoba Economic Development, Investment and Trade

Telephone 204-945-2700

e-mail: [email protected]

D) Tax Information Branch

Manitoba Finance

Telephone 204-945-5603

Toll-free 1-800-782-0318

e-mail: [email protected]

For further information on government programs, individuals can contact Manitoba Government Inquiry by calling 204-945-3744 in Winnipeg or toll-free
1-866-626-4862, or by e-mail at [email protected] .

Interprovincial Comparison of 2022 Tax Rates

	CAN	BC	AB	SK	MB	ON	QC	NB	NS	PE	NL
Personal Income Tax
Basic Personal Amount ($)	14,398	11,302	19,369	16,615	10,145	11,141	16,143	11,720	8,481	11,250	9,803
Top Rate (%)	33.00	20.50	15.00	14.50	17.40	20.53 J	25.75	20.30	21.00	18.37 J	21.8
Health Care Premiums ($)						900
Health and Education Tax (%)		1.95 B			2.15 C	1.95 D	4.26 E				2.0 F
Corporation Income Tax (%)
Small	9.0	2.0	2.0	1.0 K	0.0	3.2	3.2	2.5	2.5	1.0	3.0
Large	15.0	12.0	8.0	12.0	12.0	11.5	11.5	14.0	14.0	16.0	15.0
Small business limit ($000)	500	500	500	600	500	500	500	500	500	500	500
Capital Tax on Banks (%)				4	6			5	4	5	6
Sales Tax (%)	5	7	n/a	6	7	8	9.975	10	10	10	10
Tobacco Tax (¢ /cigarette)	14.545	32.50	27.5	29.0	30.0	18.475	14.9	25.52	29.52	27.52	32.50
Fuel Tax
Gasoline (¢/l)	10.0	14.5	0.0 L	15.0	14.0	14.7	19.2	10.87	15.50	8.47	14.5
Diesel (¢/l)	4.0	15.0	0.0 L	15.0	14.0	14.3	20.2	15.45	15.40	14.15	16.5
Carbon Levy G,H
Gasoline (¢/l)		11.05	11.05	11.05	11.05	11.05	5.66	11.05	1.10 I	6.63	6.63
Diesel (¢/l)		13.01	13.41	13.41	13.41	13.41	7.21	13.41	1.30	8.05	8.05

As of March 24, 2022

B Employers with BC remuneration of $500,000 or less don’t pay employer health tax. Between $500,000.01 and $1.5 million pay the reduced
tax amount of 2.925%. Employers with more than $1.5 million pay the tax on their total BC remuneration at 1.95%.

C Effective January 1, 2023, MB employers with total remuneration in a year of $2.0 million or less are exempted. MB employers with up to
$4.0 million of remuneration pay 4.3% on the amount in excess of $2.0 million. Employers with more than $4.0 million pay the tax on their
total MB remuneration at 2.15%.

D The ON Employer Health Tax rates vary from 0.98% on payroll less than $200,000, up to 1.95% for payroll in excess of $400,000.

E The QC Health Services Fund contribution rates vary from 1.25% to 4.26% dependent upon sector and total payroll. Employers, other than
a public-sector employer, with total payroll less than $6.5 million are eligible for the reduced contribution rates.

F The NL Health and Post Secondary Education Tax, at a rate of 2%, is payable by employers whose annual remuneration that exceeds $1.3 million.

G On April 1st, 2019, the federal government implemented a carbon pricing system in provincial jurisdictions that do not have a carbon pricing system that aligns with the federal benchmark. The federal government fuel charge applies in MB, AB, SK, ON, and NB.

H Rates apply to April 1, 2022 to March 31, 2023.

I NS operates under a provincial Cap-and-Trade program, the figures listed in the table are estimated costs.

J Includes provincial surtax.

K Saskatchewan&aposs small business corporate income tax rate temporarily dropped from 2% to zero effective October 1, 2020. Beginning July 1, 2022, the small business tax rate will move to 1%. And on July 1, 2023, the small business tax rate will return to 2%.

L The Alberta government announced that starting April 1, Albertans will not pay the provincial fuel tax, and that the government will review the collection of the fuel tax on a quarterly basis and, if required, consider reinstating collection in stages.