Latest news with #HomeownersAffordabilityTaxCredit
Winnipeg Free Press
27-05-2025
- Business
- Winnipeg Free Press
A problem that could have been avoided
Opinion It's an issue causing economic harm and anxiety for many Manitoba homeowners, with its impact being felt throughout the province well into next year. The worst part is that it was entirely avoidable. Last week, it was revealed that many Manitobans did not receive the Homeowners Affordability Tax Credit on their 2025 property tax bills. The new credit of up to $1,500 replaced the previous 50 per cent education property tax rebate. In order to have the rebate applied to a particular property tax bill, the taxpayer must own the property, it must be their principal residence and be assessed as a single residential dwelling, and the homeowner cannot be receiving the credit on any other home in the province. If all those requirements are met, the taxpayer must also register the home as their principal residence via a 'Homeowners Affordability Tax Credit self-declaration.' You don't get the credit against your property taxes unless you sign that piece of paper and deliver it your local government. Most Manitobans were never told about that requirement. Or, if they did somehow find out about it, the deadline for ensuring it would reduce this year's property tax bill had already expired. There was no media campaign that told homeowners about the registration requirement and deadline, and many only found out about the requirement in the past few days. Others still don't know. Those who haven't received the rebate on this year's property tax bill for their principal residence can claim the tax credit on their 2025 income tax return. In the meantime, they must pay their property tax bill (without a discount for the rebate) before the deadline in order to avoid a late payment penalty. This is a serious problem for several reasons. First, there is no cogent explanation why many homeowners have received the rebate on their tax bills despite not filling the required declaration, while others have not. I received the rebate on my property tax bill even though I did not file a declaration, while my son did not receive the rebate because he also failed to do so. Second, many Manitobans are still struggling with affordability challenges and a sudden increase in their property tax bill makes life much harder. Third, an income tax credit via a tax return that will be filed sometime next spring does not solve a cash crunch that is happening right now. Beyond that, an income tax credit is far less valuable for low-income Manitobans than an up-front rebate. Fourth, many homeowners who pay their property taxes as part of their mortgage payments are suddenly finding out that their respective payments will be much higher because of the absence of the rebate. If the taxpayers can't afford the higher payment, they could face foreclosure proceedings. Fifth, school divisions across the province will be receiving extra tax revenue that should have been subject to the rebate ($1,500 per property), yet will have no way of knowing how big the overpayment is until homeowners claim the income tax credit next year. The province will likely claw that extra money back from divisions, almost all of whom are strapped for cash. Sixth, this year's rebate process creates a mess for the provincial government's books, in that it was first announced in the previous fiscal year, is being rolled out in the current fiscal year, but the total amount of income tax credits paid to Manitoba homeowners won't be known until well into the next fiscal year. That complicated reality has huge implications for the province's deficit calculations for the 2026 and 2027 fiscal years. Wednesdays A weekly dispatch from the head of the Free Press newsroom. All of those problems — and all of that anxiety — could have been avoided if the province had simply notified Manitobans that they must file paperwork by a certain date in order to qualify for the rebate on this year's property tax bills. They didn't do that, but there is an obvious solution to the problem: permit those Manitobans who failed to file the necessary declaration to do so when they pay their taxes this year, and apply the $1,500 rebate or reduction to their respective property tax bills at that time. And, after doing that, do a better job of warning homeowners next year. Deveryn Ross is a political commentator living in Brandon. deverynrossletters@ X: @deverynross
Winnipeg Free Press
21-05-2025
- Business
- Winnipeg Free Press
‘Terribly unfair': some homeowners slam province after property tax rebate left off bill
The NDP government was on the hot seat Tuesday after some homeowners complained they did not receive the promised $1,500 tax credit on their property tax bill. During question period, the Progressive Conservatives cited several examples of residents who did not receive the Homeowners Affordability Tax Credit on their bills, which were mailed out May 8. Residents have been hit with higher bills this year thanks to increased property and school taxes. The new credit replaced the previous 50 per cent education property tax rebate. Finance critic Lauren Stone called the government rollout of the credit 'sloppy.' Finance Minister Adrien Sala dodged questions in the house about how many eligible Manitoba homeowners didn't receive the credit. MIKAELA MACKENZIE / FREE PRESS FILES Finance Minister Adrien Sala dodged questions in the house Tuesday about how many eligible Manitoba homeowners didn't receive the Homeowners Affordability Tax Credit on their bill. MIKAELA MACKENZIE / FREE PRESS FILES Finance Minister Adrien Sala dodged questions in the house Tuesday about how many eligible Manitoba homeowners didn't receive the Homeowners Affordability Tax Credit on their bill. 'This is incredibly important that people get that $1,500 benefit as quickly as possible,' Sala said after question period. 'We know Manitobans are facing affordability challenges and that was the reason why we brought this measure forward.' One senior who contacted the Free Press said she and her husband did not receive the rebate while another nearby homeowner did. 'It seems terribly unfair, seeing that this was touted by the NDP as being a universal credit,' said a Southland-area woman who spoke on the condition of anonymity. 'There's no reason for some people to get it and some people not.' Last year, their Winnipeg property tax bill was $5,279 after the 50 per cent rebate was applied. This year, their bill is $7,727. Sala said it appears those who didn't receive the $1,500 credit hadn't registered their home as their personal residence with the city or municipality. Last year's 50 per cent rebate went to all residential property owners; this year's credit only goes to the owner of a principal residence. 'In some instances we are seeing individuals who did not register their residence as a principal residence that are not able to access that $1,500 credit,' the finance minister said. 'Our message to Manitobans is that we're being made aware of this challenge and we're going to make sure that we get that $1,500 credit into your hands, as it should be.' 'It seems terribly unfair, seeing that this was touted by the NDP as being a universal credit.'–Senior who did not receive the rebate The senior in Southland said they've lived in their home for five years and doesn't recall having to apply for or register their home as their principal residence. She said she contacted the city and her MLA and was sent an email with a form to fill out. She was told they can apply for it next year and, in the meantime, they could claim the $1,500 when they file their income tax. The PC finance critic said they've heard from dozens of homeowners who had received a rebate in the past. 'This year, they're seeing no rebates, no credit on their bill,' Stone said. They're required to pay their full tax bill then claim it next year on their income taxes, she said. 'A lot of individuals don't have those extra hundreds of dollars, thousands of dollars sitting around with the cost of living right now,' the member for Midland said. 'As we have been saying for a number of months, this was going to be a big problem when the NDP removed that 50 per cent property tax rebate. This was sloppy planning. And now we're seeing the results of those sloppy decisions made by the NDP government.' MIKAELA MACKENZIE / FREE PRESS FILES PC Finance critic Lauren Stone called the government rollout of the credit 'sloppy.' MIKAELA MACKENZIE / FREE PRESS FILES PC Finance critic Lauren Stone called the government rollout of the credit 'sloppy.' Another Winnipeg homeowner, Dave Routhier, said he was shocked when he opened his bill, which was $1,300 more than last year. 'We're blessed that we are able to absorb the impact to our cash flow … but individuals that cannot — lower-income individuals, people on fixed incomes, retirees — it's a huge hit to them,' Routhier said. Sala was asked who was responsible for informing Manitobans that they needed to register their principal residence with the city or municipality to receive the credit. 'In some instances, for example, in Winnipeg, residents didn't get that communication maybe as effectively as they should have,' Sala said. City councillor Jeff Browaty pushed back. 'It's a provincial tax credit program so it really is incumbent, I think, on the province to publicize this,' Browaty said. Sala said the province isn't responsible for school divisions raising education property taxes by as much as 26 per cent (in East St. Paul) — and that 'now is not a time to be raising costs on Manitobans. ' Sent weekly from the heart of Turtle Island, an exploration of Indigenous voices, perspectives and experiences. He said the former PC government was 'not a good partner' to school divisions. 'They were not investing at levels that were required. We came in and we've invested meaningfully to our education system to make sure our kids can succeed.' Alan Campbell, president of the Manitoba School Boards Association, said many boards have lost significant spending power over the last decade due to austerity measures and inflationary pressures. The sitting government's 'return to local autonomy… is a welcome return,' Campbell said, referring to the province reinstating and supporting school boards' taxing powers. 'School boards go through greater lengths to walk our communities through our budgets — more than any other level of government,' the veteran Interlake School Division trustee said. — with files from Maggie Macintosh and The Canadian Press Carol SandersLegislature reporter Carol Sanders is a reporter at the Free Press legislature bureau. The former general assignment reporter and copy editor joined the paper in 1997. Read more about Carol. Every piece of reporting Carol produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press's tradition, since 1872, of producing reliable independent journalism. Read more about Free Press's history and mandate, and learn how our newsroom operates. Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber. Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
Winnipeg Free Press
16-05-2025
- Business
- Winnipeg Free Press
Manitobans drowning in taxes, PCs say
Manitoba retirees and small businesses are getting 'pinched' by bigger property tax bills after the NDP government vowed most Manitobans would pay less, the Tories say. Examples of seniors on fixed incomes and businesses taking a hit were tabled by the Progressive Conservatives in the legislature this week. A pensioner, 79, who's lived in the same house for 53 years with his wife, saw their property tax bill increase by 54 per cent to $1,359 from $880, while their pension benefits increased by three per cent. 'We have paid all our taxes and been good citizens over our lifetimes,' the senior, whose name was redacted, wrote in an email Tuesday to Premier Wab Kinew, PC Leader Obby Khan and others. 'Is it too much to ask that we be able to remain in the familiar surroundings of our homes? … It is much less costly to the government than trying to fit us all into personal care homes.' The property tax bill of a business shared by the PCs showed a $4,650 increase to the education portion, totalling $13,250 this year compared to $8,600 last year. 'We've heard from dozens of small businesses that also experienced the pinch under this NDP government,' Khan told reporters. 'We are talking about real Manitobans.' The NDP introduced a $1,500 Homeowners Affordability Tax Credit this year, replacing a 50 per cent residential and 10 per cent commercial property tax rebate in 2024. 'This new policy, where everyone gets the same rebate, is much fairer and increases benefits for low- and middle-income homeowners who most need the help,' said University of Manitoba economics associate Prof. Jesse Hajer. The professor said the old system was a poor use of public funds as it gave the largest rebates to 'some of the wealthiest Manitoba residents and corporations.' He pointed to research by the Parliamentary Budget Office that showed higher-income earners are better off despite recent high inflation because their incomes have increased more than enough to compensate. Lower- and middle-class households, it said, are worse off. Many seniors on a fixed income in higher-value homes have made significant gains in their net worth with rising house prices, Hajer said. Lower-income seniors receive an additional income-tested tax credit on top of the $1,500 homeowners tax credit, he noted. 'The reality is that we need tax revenue to pay for schools, hospitals, roads and other public services. Taxing high-value homes is a reasonable way to get it,' Hajer said. Small business owners are feeling the loss of last year's 50 per cent residential and 10 per cent commercial education tax rebate in addition to increases in property assessments and school division mill rates, said a spokeswoman for the Canadian Federation for Independent Business. 'In last year's budget, the province replaced these rebates with a flat $1,500 property tax credit for residential properties, leaving commercial properties with no support,' Brianna Solberg said. Nearly 45 per cent of CFIB members surveyed last year approved of the change, compared to 38 per cent who opposed it — likely because of immediate relief they expected to receive on their residential tax bills, Solberg said. When the bills arrived, there was no relief thanks to higher property assessments and school taxes. 'Without any relief on their commercial tax bills, many business owners are now questioning whether anyone is better off under this new tax-credit system,' she said. Finance Minister Adrien Sala said the province has taken steps to help small businesses, including a payroll tax cut, a $10 million security rebate program, reducing personal income taxes, and income tax bracket changes 'that are saving Manitobans money all across the board.' Winnipeg Jets Game Days On Winnipeg Jets game days, hockey writers Mike McIntyre and Ken Wiebe send news, notes and quotes from the morning skate, as well as injury updates and lineup decisions. Arrives a few hours prior to puck drop. Kinew said the homeowners tax credit 'really, really helps the people who need the most help,' including those who own smaller homes and people in rural communities. 'A lot of those folks aren't going to be paying any education taxes at all.' It's a course correction from the 'radical changes' introduced in 2022 when the PCs slashed provincial property taxes, said Molly McCracken with the Canadian Centre for Policy Alternatives. 'The cuts were regressive as wealthier homeowners saved more on their taxes, creating a deficit of revenue for the province,' she said. 'Property taxes are a reliable and needed source of funding for the public services we all rely upon. 'The Manitoba government has taken steps to make these taxes more progressive.' Carol SandersLegislature reporter Carol Sanders is a reporter at the Free Press legislature bureau. The former general assignment reporter and copy editor joined the paper in 1997. Read more about Carol. Every piece of reporting Carol produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press's tradition, since 1872, of producing reliable independent journalism. Read more about Free Press's history and mandate, and learn how our newsroom operates. Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber. Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
Winnipeg Free Press
09-05-2025
- Business
- Winnipeg Free Press
NDP responsible for some Winnipeggers' property tax bill ‘shock,' Tory finance critic charges
Winnipeggers 'are in for a shock' when they open their property tax bills, Progressive Conservative finance critic Lauren Stone warned in the legislature Thursday. Stone (Midland) shared a letter from Winnipeg city council finance chair Jeff Browaty saying that, of the 240,000 property owners receiving bills this week, about 93,000 will benefit from the introduction of the province's $1,500 Homeowners Affordability Tax Credit. However, many more — about 132,000 — are on track to pay more, since the NDP scrapped the previous Tory government's 50 per cent education property tax rebate, the letter said. 'We know our approach is going to save 80 per cent of Manitobans more money than under the previous government's approach,' Finance Minister Adrien Sala told Stone during question period. In 2024, the NDP announced that starting this year, the school tax rebate and education property tax credit would be replaced by the new Homeowners Affordability Tax Credit of up to $1,500 on principal residences. The new model would provide relief for more households than the rebate and tax credit, effectively eliminating education property taxes for homes with assessed values of approximately $285,000 and below, Premier Wab Kinew said at the time. 'While this minister irresponsibly eliminated the 50 per cent education property tax rebate, Winnipeg families are going to be paying more as a result,' Stone said. Browaty, the city finance chair, said the numbers he provided to Stone come from the city assessor and include all categories of properties, not just owner-occupied homes. They include commercial and industrial properties that were receiving a 10 per cent credit under the previous PC rebate system and multi-family properties and non-owner-occupied homes that received a 50 per cent rebate. Switching to the tax credit and getting rid of rebates for commercial properties was expected to save the province $148 million. Sala said the province is increasing the $1,500 homeowners' affordability tax credit next year to $1,600 'to save Manitobans more money.' 'That's just one thing to make life more affordable,' he said, pointing to the permanent 10 per cent fuel tax cut and hydro rate freeze that the NDP government brought in this year. Stone called the $100 homeowners tax credit increase 'window dressing.' School divisions across Winnipeg are hiking property taxes between 10.4 per cent and 18.4 per cent, and the city is increasing property taxes by 5.95 per cent, Browaty noted in his letter. It's difficult for municipalities to communicate the changes to residents, as most people only look at the total tax bill, he wrote. Stone accused the NDP of 'sloppy fiscal planning.' 'As we've seen, property values are continuing to increase and Manitobans and Winnipeggers are paying the price,' she said. 'It did not account for the general assessment that took place this year or for increasing property values that we continue to see.' She said there are seniors on fixed incomes who've been in their homes for a long time who are seeing their property values and education taxes soar and, now, so will their tax bills. Stone said the province should revert to the PC system that offered 50 per cent education property tax rebates and move towards eliminating education taxes on properties altogether. Carol SandersLegislature reporter Carol Sanders is a reporter at the Free Press legislature bureau. The former general assignment reporter and copy editor joined the paper in 1997. Read more about Carol. Every piece of reporting Carol produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press's tradition, since 1872, of producing reliable independent journalism. Read more about Free Press's history and mandate, and learn how our newsroom operates. Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber. Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
