Cheques no longer in the mail

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This article was published 14/12/2023 (667 days ago), so information in it may no longer be current.

The NDP government will not mail out cheques for the $453-million education property tax rebate brought in by the Progressive Conservatives.

On Thursday, Premier Wab Kinew announced the 50 per cent tax cut will instead be applied directly to municipal property tax bills in 2024.

“That means that you save the money up front,” the premier explained. “If you’re signed up for that monthly installment plan, you’re going to save that money each and every month.”

The provincial government is estimated to save about $500,000 on printed cheques and postage by making the switch, Kinew said.

During the fall election campaign, the NDP promised to maintain the 50 per cent education property tax rebate and “take the politics” out of it by applying it directly to the tax bill.

The former PC government insisted on mailing the rebate cheques to property owners despite complaints from some municipal leaders the cheques created administrative work for them, with staff often fielding questions about school taxes.

At the time, the PCs argued mailing cheques and associated materials helped to inform property owners about the party’s tax program.

Association of Manitoba Municipalities president Kam Blight applauded the decision to apply the rebate directly to property tax bills.

“Streamlining the administration of the (rebate) will help reduce administrative burdens on municipalities,” Blight said in a statement Thursday.

Property tax bills mailed out by the City of Winnipeg in May 2024 will be among the first to have the rebate included.

A city spokesperson said they could not comment on how the changes might affect administrative processes without more details from the province.

Kinew said conversations with municipalities and school boards to make the changes are ongoing, but he expects towns, cities and taxpayers will find the new process easier.

“There’s been all sorts of issues, not least of which is that a number of these cheques actually go uncashed each and every year,” Kinew said.

Tory finance critic Obby Khan said he is concerned the NDP may not continue to issue the rebate beyond 2024.

“Will this education property tax (rebate) be around, will they phase (the tax) out as the previous government had committed to?” Khan said. “That’s what Manitobans need to know.”

The association has also pushed the provincial government to develop a new funding model that reduces the reliance on property taxes.

Kinew said the NDP is committed to the 50 per cent rebate but is not going to follow the previous government’s plan to phase out the education property tax over a 10-year period.

Development of a new education funding model will continue in 2024, the premier said, with changes or implementation coming after that work is completed.

“We are going to be looking at a new education funding model with an eye towards improving equity and outcomes and ensuring that students across Manitoba get the support that they deserve,” Kinew said.

“This announcement here today is a step towards a future education and revenue generation model.”

Meantime, Kinew said the second part of his campaign promise on education property tax rebates — to stop giving them to billionaires — is proving to be tougher than first thought.

“This is one of the things that you say in opposition, and then you get into government and it’s a bit more challenging,” Kinew said. “So we’re still working on that to be frank.”

The million-dollar question is how to define billionaire, the premier said.

“It’s not complicated for you or I to figure out who an out-of-province billionaire is, but when we’re talking about administrating a province-level program fairly, we have to set up criteria. That is proving to be a lot of work,” he said.

danielle.dasilva@freepress.mb.ca