COLUMN: View from the Legislature – NDP tax shock for some homeowners

Before the Manitoba NDP were elected in the fall of 2023, Manitoba homeowners were provided with a 50 percent rebate on the school taxes that they were charged on the value of their home. This was part of a longer-term provincial government plan to move funding of education away from property value because it wasn’t considered a fair way to determine ability to pay. Many people, for example, were seeing the value of their home go up but their income was not rising at the same rate.

The 50 percent school tax rebate was an important affordability measure that, while in opposition, the NDP agreed with. That changed quickly after they came into government. Then they announced that they were cutting the 50 percent tax rebate program and replacing it with a flat $1,500 tax credit to be applied against school taxes on your annual property tax bill.

While at first this didn’t draw much attention, that has changed as Manitobans now begin receiving their property tax bill. For tens of thousands of Manitobans, they have seen a significant increase in the assessed value of their home. As well, in virtually all areas of the province, school taxes have increased this year, in some cases, double digit increases. The result is that, even with the $1,500 tax credit, Manitobans are now opening up their property tax bills and many are shocked by the increase in school taxes they are paying this year over last year.

To make matters worse, some are finding that when they open their bill the $1,500 credit isn’t even being applied. The NDP said last week that this is due to an error and that people could apply for the credit on their next year’s taxes, almost a year away! So, in addition to paying hundreds (in some cases thousands) more because of higher school taxes, the NDP feel Manitobans can afford to wait for the tax credit that was botched by the NDP in the first place.

Two weeks ago the NDP tried to blame municipalities for this mess. But municipal officials rightly pointed out that it is a provincial program, not a municipal one. Then last week the NDP Premier said the higher taxes were the fault of school divisions and if Manitobans don’t like it, they can vote out school trustees next year. Yet, all of that is a deflection from the real cause of this mess.

The NDP created this mess by first eliminating the 50 percent school tax rebate which ensured that Manitobans didn’t get stung by higher school taxes every year. Then, when they made the change to the new credit system, they failed to mention to Manitobans that the majority would be worse off and would pay more. They then added insult to this financial injury by implementing the system in such a sloppy manner that many homeowners are not even getting the credit at all on their school tax bill.

For many Manitobans, they have yet to receive their annual property tax bill and so have not yet seen what impact this NDP mess will have on their school taxes. What they can be certain of is that it is not as promised and like so many things under the NDP government, it ends up costing Manitobans a lot of money.