City report recommends tax deadline reprieve

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This article was published 02/04/2020 (2024 days ago), so information in it may no longer be current.

The city will consider waiving late fees for up to three months on property and business taxes to help those suffering financially from the COVID-19 pandemic.

A new report calls on council to halt late fees for tax payments during the three-month grace period.

“This deferral should alleviate some of the pressure that our residents are experiencing right now and it’s important that the city offer relief,” said Coun. Scott Gillingham, the city’s finance chairman.

If approved, the change will mean homeowners could pay property taxes as late as September, instead of June, and businesses could pay business taxes as late as August, instead of May, without penalty.

The city expects it would lose $5.2 million in revenue, if the tax deferral program is implemented, though that estimate assumes the majority of taxpayers will still pay on time.

Mayor Brian Bowman said the city expects its budget will take a substantial financial hit from the pandemic, so it’s extremely important that those who can afford to pay their taxes on time, do so. The mayor said revenue will help the city avoid service cuts, layoffs and other extreme cost-cutting measures.

“For those that have the means, we’re urging them to continue to pay your taxes in a timely way. That’s one way in which our residents, homeowners and businesses can do their part to ensure that some of those choices will be minimized,” said Bowman.

The changes would allow homeowners to enrol in the Tax Instalment Payment Plan before Sept. 30, without paying the usual enrolment fee. Anyone in TIPP would also not face late or insufficient-fund penalties for payments not made during the grace period.

Once that ends, penalties will resume, the city says.

The report also notes that taxes stop being charged when a business permanently closes but taxes will resume for those that have temporarily shut down.

The city says the change should ensure 2020 education levies are passed on to the province by the deadline of Jan. 31, 2021.

The report notes the 2020 budget predicted the city would earn $18 million in penalties for overdue accounts throughout the year.

Council is set to vote on the changes on Friday, though many Winnipeggers who want to watch the meeting will have to tune in online. City hall will be closed to the public, as of Friday, as health orders continue to ban public gatherings of more than 10 people.

Councillors and delegates who’ve registered to speak at the meeting will be allowed inside.

Meanwhile, council is slated to vote on allowing its members to meet virtually through some form of electronic means for four months, beginning April 20.

That motion proposes to study whether more power should be given to top city staff and councillors during the same time period. It notes that could allow: the chief administrative officer to approve all contract awards that fall within council-approved budgets; the planning, property and development director to decide on some conditional use and variance requests; and let councillors approve some grants that meet previously set criteria.

Joyanne.pursaga@freepress.mb.ca

Twitter: @joyanne_pursaga