NEWS RELEASE

October 11, 2018

For Immediate Release

                                                  Jenny Motkaluk Reveals Innovative Property Tax Plan

                                                                Delivers rate protection, simplicity and predictability down to the individual homeowner level

 

Today – Mayoral candidate Jenny Motkaluk unveiled her eagerly awaited property tax reform that will protect each individual homeowner against drastic rate increases while offering simplicity and predictability. In stark contrast to Brian Bowman’s “top-line” annual 2.33% tax increase that often causes drastic rate hikes for some homeowners, Jenny’s plan will cap each residential property at an affordable 1.16% annually for 4 years.

“The “Gotcha” property tax hike days in Winnipeg are over. Stability and predictability are what homeowners want and deserve. For the first time ever, homeowners will enjoy year over year certainty on their property taxes and never be subjected to outrageous increases and questionable assessments,” says Motkaluk.

“My property tax plan is simple, fair and meaningful for each individual homeowner.”

Brian Bowman’s straight-line property tax increase of 2.33% annually is not only excessive but it forces volatility into residential rate calculations because it refers to the global pool of revenue that the city takes in collectively as opposed to per residential home. This current system creates unnecessary complexity in determining the tax bill for each property, while not making any difference in the total revenue. If some properties go down others will be forced to rise to compensate and maintain the overall top-line revenue at a 2.33% annual increase. That extra complexity adds cost because nearly all property taxes must be arbitrarily adjusted to “fabricate” a top-line number.

“The current property tax regime is unfair to each homeowner because it forces their property values to be subject to everyone else’s rate and be adjusted to meet a contrived total. That makes absolutely no sense and is anything but fair,” adds Motkaluk.

“My tax reform plan means that your tax bill will not increase by more than 1.16% as long as you own your home. No matter what happens to any other homes in Winnipeg.”

“Brian Bowman’s tax and spend agenda assumes homeowners are automated cash machines at his disposal to gouge as he sees fit. I will bring intelligence and fairness back to property taxation.”

Jenny’s maximum annual rate increase of 1.16% per property will apply to owner occupied properties only. Commercial and rental properties will be subject to a maximum 1.16% annual rate increase on a top-line basis.

 

Motkaluk promised to go into greater detail on what this tax reform means to individual homeowners tomorrow.

– 30 –

 

 

 

 

Briefing Note

 

ISSUE:                   Current and Historical Context on Taxation and Fees in Winnipeg

DATE:                    October 4, 2018

 

  • Over the past ten years, the City of Winnipeg’s revenue increased 38.0% while expenses increased 49.4%.

 

Year Revenue

 ($ thousands)

Expenses

($ thousands)

2017 1,577,667 1,591,905
2016 1,496,748 1,572,712
2015 1,442,920 1,485,986
2014 1,442,234 1,503,859
2013 1,396,454 1,396,800
2012 1,303,654 1,299,723
2011 1,272,424 1,273,234
2010 1,203,751 1,184,638
2009 1,150,585 1,150,433
2008 1,144,074 1,065,182

Source: Detailed Financial Statements for each fiscal year

 

  • In 2017, there were 231,360 taxable properties in Winnipeg.

 

  • Total assessed property values were $85 Billion; $67 Billion of which was residential property.

 

  • Municipal realty tax revenue was $535 Million in 2017, Frontage levy revenue was $63 Million.

 

  • There were 281,045 private households in Winnipeg in 2016; 182,395 were owner-occupied, 98,655 were tenant-occupied.

 

 

Below is a table of households by ownership status broken down by federal electoral district for additional context.

 

District Owner-Occupied Homes Tenant-Occupied Homes % Owned
Winnipeg Centre 15,035 22,110 40%
Winnipeg South Centre 25,460 16,275 61%
Winnipeg North 20,820 10,515 66%
Charleswood-St. James-Assiniboia-Headingley[1] 24,605 9,745 72%
Kildonan-St. Paul1 23,950 9,450 72%
Elmwood-Transcona 26,545 9,415 74%
Winnipeg South 27,145 8,440 76%

 

  • The municipal mill rate has declined substantially over the past decade; today it is nearly half the rate it was ten years ago:

 

Year Municipal Mill Rate
2018 12.987
2017 13.063
2016 12.766
2015 13.682
2014 13.372
2013 14.600
2012 14.056
2011 15.295
2010 15.295
2009 25.448
2008 25.448
2007 25.448
2006 25.448
2005 29.686
2004 29.686
2002 29.686

 

  • Frontage levy rates have increased almost 50% since 2014, rising $1.50 per foot:

 

Year Combined Frontage levy rate ($ per foot)
2018 5.45
2017 5.45
2016 5.45
2015 4.35
2014 3.75
 

 

 

 

 

 

  • Sewer service rates have risen by $0.79 since 2014, or 36%:

 

Year Sewer Service Rate ($ per cubic meter)
2018 2.80
2017 2.55
2016 2.40
2015 2.28
2014 2.21

 

 

  • Water service rates have increased by $0.51 to $0.40 since 2014 with some residents paying 39% more than they did four years ago:

 

Year Water Service Rate ($ per cubic meter)
2018 1.82
2017 1.78
2016 1.63
2015 1.38-1.45
2014 1.31-1.42

 

[1] Partially outside Winnipeg