School tax rebate benefits Winnipeg’s large property owners more

The partial school tax refund for property owners is an initiative unveiled by Brian Pallister’s government in April 2021.

This refund was 25% in its first year. The measure cost nearly $250 million. According to Premier Pallister, the purpose of the program was to restore people who work hard for their money, seniors on a fixed income, families in need [et] small businesses.

The average reimbursement for a homeowner in Winnipeg was $458 in 2021. According to data obtained through a Freedom of Information request, the amounts received vary, ranging from $8 for a small condo in the St John, up to $6,023 for a 916m property² located in Tuxedo.

The owner of this residence refused to grant an interview to CBC/Radio-Canada.

Ranking properties under 10 tiers from lowest to highest reimbursements, analysis of the numbers indicates that the top 10% of residential properties received collectively over $17 million. in total.

Conversely, the bottom 10% of owners collectively got just over $4 million.

Two other school tax refunds are planned for property owners. Premier Heather Stefanson announced that they will be 37.5% of the school tax in 2022 and 50% in 2023.

No limit has been set on the amounts that can be granted.

Homeowners aren’t the only ones getting a refund. Commercial properties got 10% for the first year and will receive another 10% of the school taxes they paid in 2022.

The Polo Park shopping center thus brought back to its owners a reimbursement of more than 1 million dollars.

Most low-income people don’t even realize they’re being screwed by the governmentsays Olivia Klaric, who lives in a house of 62 m² in the Point Douglas neighborhood.

A majority of homeowners in this neighborhood are in the lower tier of school tax refunds. Ms. Klaric received a refund of $111.56.

” Equity was not on the agenda in [le plan du gouvernement]. »

Two-tier reimbursement

Every dollar in the pockets of a wealthy homeowner is a dollar less invested in Manitoba’s health care system, schools, or growing the economy equitably.explains the economist at the University of Manitoba, Jesse Hajer.

Mr. Hajer is not surprised that wealthier owners receive more. This is consistent with how tax breaks work. Those at the top receive more than those in the middle or at the bottom of the scalehe explains.

The economist, who is also a columnist for the Canadian Center for Policy Alternatives, explains that tax breaks are much less transparent than support programs.

According to Mr. Hajer, the reductions hide the fact that the amounts are concentrated mainly in the upper classes, whereas for the support programs, it is very easy to know how much each person receives and there is a ceiling on the amounts granted.

Finance Minister Cameron Friesen was not available for an interview, but he provided CBC/Radio-Canada with a written statement that did not respond to the refund analysis.

Affordability is a top priority for our government, writes the Minister. Our Budget 2022 school tax rebates for homeowners are helping to make life more affordable for Manitobans.

With information from CBC