Manitoba Enacts Sales Tax Rate Changes Effective July 1, 2013

Manitoba has announced a number of sales tax rate changes, effective July 1, 2013. The following retail sales tax rate changes will change for a ten year period ending June 30, 2023. The general sales tax rate increases from 7% to 8%. The sales tax rate on mobile, modular, and ready-to-move homes increases from 4% to 4.5%. The reduced sales tax rate for electricity used by qualifying manufacturers, mining companies and oil well operators increases from 1.4% to 1.6%. These rate changes will return to the rates that existed prior to these changes on July 1, 2023.

Effective July 1, 2013, baby supplies such as diapers, stroller, cribs, gates and monitors, as well as items used for nursing, feeding or bathing are exempt from sales tax. Effective July 1, 2013, child safety restraint systems used in vehicles, such as car seats and booster seats are exempt from sales tax. Effective May 1, 2013, helmets designed for use while riding a bicycle are exempt from sales tax, and no age restriction applies.Effective July 1, 2013, the sales tax exemption for municipalities on sand/salt mixtures are expanded from flood-related activities to include any municipal works. (Manitoba Finance Bulletin No. 113)

Posted on August 26, 2013