Mayor Sam Katz dropped hints this afternoon that Winnipeg residential property owners might see their taxes go up soon.
But while he only gave hints about that possibility, Katz was firm that business owners won't get a break next week when the city tables the draft version of its 2008 operating budget.
Talking with reporters, Katz said budget preparations continue to the last minute but municipal business taxes -- which bring in $56 million annually to city hall -- won't decline.
"The situation this year is not a good situation," Katz said, echoing concerns from other councillors charged with drawing up the budget that outlines how civic government will pay for municipal services such as police and fire departments, libraries and garbage collection.
"So, ... you won't see any change in the business tax," Katz said. "It'll be the status quo."
Katz reminded reporters the business tax rate, a levy based on a business's annual rental value, has declined from 9.75 per cent to 7.75 per cent during his administration. He has promised to eliminate it. Winnipeg is one of three major Canadian cities to have such a tax.
For 11 years, the city has frozen property taxes. Asked how long the streak would continue, Katz replied:
"Not much longer," he said, without being more specific. Katz has always promised to do his utmost to prevent a property tax hike but he suggested Winnipeggers would be faced with an increase in the next five years.
"We still have a lot of work to do," he said, as politicians headed to closed-door budget meetings.
City hall has scheduled tabling of the budget for next Thursday.
PREVIOUS
