Winnipeg — Many Manitoba states will soon reduce property tax payments and raise more money to take advantage of online digital services.
The Progressive Conservative Government’s 2021-22 budget, announced Wednesday, includes long-term promised tax deductions, new tax revenues from the digital economy, and millions of dollars in promised COVID-19 relief. ..
“Our plan is to really protect Manitoba through COVID-19 and move the state economy beyond the pandemic,” said Finance Minister Scott Fielding.
The budget includes the first steps in a plan to phase out property taxes and instead fund schools directly from state funding.
Home and farmland owners will receive a 25% rebate this year, and commercial and other land owners will receive a 10% rebate. According to the government, rebates will be reduced by the same amount next year, saving a total of $ 1,100 for the average homeowner.
The state also plans to reduce vehicle registration fees by 10% as of July and will remove state sales tax from spa and salon services in December.
Companies are to receive tax cuts to encourage employment. The standard for businesses to start paying state payroll taxes is to raise their total salary from $ 1.5 million to $ 1.75 million in January. The threshold for companies to pay higher rates rises from $ 3 million to $ 3.5 million.
However, taxes elsewhere are increasing. Digital streaming services such as Netflix and Spotify are expected to be subject to state sales tax from December 1st, similar to online accommodation bookings through companies such as Airbnb. This move will bring Manitoba into line with most other states.
Online marketplaces such as Amazon and Best Buy will need to start collecting state sales tax on goods sold by third parties after December 1. Taxes on products sold directly must already be collected. Second-hand goods sold personally by individuals through sites such as Kijiji will continue to be exempt.
“We believe there are benefits to leveling the competition with local suppliers,” Fielding said.
The Tories have also promised further support for health care and the economy as the COVID-19 pandemic continues.
More than $ 62 million are working to create jobs and promote workforce training, Fielding said. Approximately $ 25 million will be contributed to help employers hire students and young adults.
The day before the budget, Fielding promised $ 1.2 billion in COVID-19 spending, including for protective equipment and additional staffing at vaccination centers.
To assist lessees, the guidelines for increasing rent management units will be zero in 2022 and 2023, following an increase of 1.6% this year. Landlords who want to raise their rent above the guidelines must demonstrate that the amount of the guidelines does not cover the increased costs they face.
Additional budget spending and the ongoing economic impact of the pandemic are projected to generate a $ 1.6 billion deficit for a total of $ 19.4 billion this year. This is the second highest deficit in state history, after last year’s $ 2 billion.