The 2021 Manitoba Provincial budget introduced The Education Property Tax Rebate and property owners have started to receive the rebate cheque whereby a portion of the education property taxes are rebated.
Importantly:
- The registered owners of either residential or farm real property will receive a 25 per cent rebate of the school division special levy payable; and
- The registered owners of other real property (such as commercial, industrial, railway, institutional, pipelines and designated recreational) will receive a 10% rebate of the total of both the school division special levy and the education support levy payable.
In your capacity as a solicitor acting for a seller, we recommend for to be closed transactions that you ask the seller whether or not they have received the rebate cheque; if the rebate cheque has been received, we recommend that your office add a line item to your Statement of Adjustments in respect of same, adjusting based upon the number of days the seller is in possession, by virtue of an example:
Education Property Tax Rebate
School Taxes assessed at $2,017.56 x 25% rebate = $504.39
Credit Buyer for share being 191 days (July 5th to December 31, 2021)
$504.39 x (180/365)
Credit Buyer: $248.74
If the rebate cheque has not been received please inform the seller that an adjustment should still be made in anticipation of the seller receiving the rebate cheque in the near future.
In your capacity as a solicitor for a buyer, we recommend that in the event the seller’s Statement of Adjustment does not have a line item for the Education Property Tax Rebate you ask the solicitor for the seller whether or not they have inquired with the seller as to whether or not the rebate cheque has been received and that you request an adjustment be made accordingly.
In the event the rebate cheque has not been received by the seller and an adjustment is made, the buyer and the seller should exchange the standard Undertaking to Readjust and be advised that a further adjustment could be necessary in respect of the rebate cheque as the adjustment was estimated in anticipation of the rebate cheque being received.
Prepared by:
204-956-3510