March 13, 2019
On March 7 the Manitoba Government released Budget 2019, which was highlighted by a 1% cut to the PST, bringing the tax from 8% down to 7% effective July 1, 2019.
While WCA believes this move will be good for the economy in the long run, it definitely raises some questions for the industry and for our members between now and July 1. What happens to contracts that have already been signed with an 8% PST baked in? What about projects where work is being completed both before and after July 1?
WCA will be addressing these questions, along with any others that will come up due to the PST cut, in our Trade Contractor and General Contractor division meetings, and we’ll keep our members up-to-date on industry best practices in managing this issue.
In the meantime, the Province has released an information notice outlining the PST Rate Reduction Transition Rules, and I would ask you to review it as soon as possible. This bulletin discusses the treatment of Tangible Personal Property and Real Property, and it offers guidance for segregating taxes on ongoing projects, for projects contracted after March 7, 2019, but which do not start until after July 1, 2019, supply and install contracts, holdback amounts etc. You can find a copy of these rules here.
Please send me any questions you have on this document or topic. We'll be seeking out advice and presenting the results at our committee meetings or in a general forum in the coming weeks.