Save up to $1,338 in 2012 with the Winnipeg Small Business Tax Credit
In 2009, to ease the burden of the Winnipeg Business Tax on the city's small enterprises, the Small Business Tax Credit was created. All firms with a business assessment under a specific amount received a full rebate of their business taxes. The City expanded this opportunity in 2010, 2011 and again in 2012.
What is the Small Business Tax Credit in 2012?
All companies with a business assessment (or Annual Rental Value - "ARV") of $22,680 or less in 2012 will receive an offsetting credit equal to their full business taxes for 2012.
It's important to note that the ARV is not in reference to how much rent a business owner pays to his/her landlord. ARV is equal to the net rent per square foot as determined by the market (ie., typical market rents for similar spaces in the reference year or at the reference date), plus comfort costs to occupy the space (ie., utility costs such as light, heat, water, plus common area charges), multiplied by the square footage of the premises. The city's primary source of rents in the reference year or date is the questionnnaires mailed out to property owners, plus rent information published in various reports.
Does the credit apply to the Business Improvement Zone (BIZ) Levy?
No. Even if a business is eligible to receive the Small Business Tax Credit, if that business is located within the boundary of a BIZ, the business will still be required to pay the tax associated with the BIZ. Learn more about Winnipeg's BIZ associations, including a contact list on the right-hand side of the webpage.
How much business taxes will small businesses be eligible to save?
As the 2012 business tax rate is 5.9%, qualifying businesses may be eligible to receive a credit up to $1,338.
How many small businesses will benefit?
It is estimated that 4,900 businesses (or 40% of all business tax accounts) will receive an offsetting credit to reduce their current year business taxes to zero.
Do I apply?
No. If your business qualifies, the credit was automatically added to the Annual Statement and Demand for Business Taxes mailed to you in April. Also, the Small Business Tax Credit will be applied/adjusted throughout the year to reflect ongoing changes in business assessments.
I have appealed my business assessment. Will this affect my eligibility for the Small Business Tax Credit?
It depends on the final outcome of the appeal. If an appeal increases your business assessment over the ARV threshold, you would become ineligible for the Credit. Conversely, if an appeal decreases your business assessment under the ARV threshold, you would become eligible for the Credit. Any changes to business assessments throughout the year will be reflected in adjustments to the Credit, as required.
I received the Small Business Tax Credit last year, but not in 2012. Why?
Your business would have received the credit last year as your ARV was less than the threshold. If you did not receive the credit in 2012 your ARV is larger than the 2012 threshold of $22,680.
How do I contact the City of Winnipeg about the Small Business Tax Credit?
You can go in person to the Assessment and Taxation Department, located on the main floor at 510 Main Street. Alternatively, you can call 311 or 1-877-311-4974 or send an email to: 311@winnipeg.ca
We hope you find the above information to be helpful. If you have questions or want to share with CFIB your opinions and experience with the Small Business Tax Credit, contact a CFIB Business Counsellor by calling (204) 982-0817 or 1-888-234-2232, or sending an email to msman@cfib.ca.
