‘Terribly unfair’: some homeowners slam province after property tax rebate left off bill

The NDP government was on the hot seat Tuesday after some homeowners complained they did not receive the promised $1,500 tax credit on their property tax bill.

During question period, the Progressive Conservatives cited several examples of residents who did not receive the Homeowners Affordability Tax Credit on their bills, which were mailed out May 8. Residents have been hit with higher bills this year thanks to increased property and school taxes. The new credit replaced the previous 50 per cent education property tax rebate.

Finance critic Lauren Stone called the government rollout of the credit “sloppy.”

Finance Minister Adrien Sala dodged questions in the house about how many eligible Manitoba homeowners didn’t receive the credit.

“This is incredibly important that people get that $1,500 benefit as quickly as possible,” Sala said after question period. “We know Manitobans are facing affordability challenges and that was the reason why we brought this measure forward.”

One senior who contacted the Free Press said she and her husband did not receive the rebate while another nearby homeowner did.

“It seems terribly unfair, seeing that this was touted by the NDP as being a universal credit,” said a Southland-area woman who spoke on the condition of anonymity. “There’s no reason for some people to get it and some people not.”

Last year, their Winnipeg property tax bill was $5,279 after the 50 per cent rebate was applied. This year, their bill is $7,727.

Sala said it appears those who didn’t receive the $1,500 credit hadn’t registered their home as their principal residence with the city or municipality. Last year’s 50 per cent rebate went to all residential property owners; this year’s credit only goes to the owner of a principal residence.

• City of Winnipeg: How to register your home as your principal residence

“In some instances we are seeing individuals who did not register their residence as a principal residence that are not able to access that $1,500 credit,” the finance minister said. “Our message to Manitobans is that we’re being made aware of this challenge and we’re going to make sure that we get that $1,500 credit into your hands, as it should be.”

“It seems terribly unfair, seeing that this was touted by the NDP as being a universal credit.”–Senior who did not receive the rebate

The senior in Southland said they’ve lived in their home for five years and doesn’t recall having to apply for or register their home as their principal residence. She said she contacted the city and her MLA and was sent an email with a form to fill out. She was told they can apply for it next year and, in the meantime, they could claim the $1,500 when they file their income tax.

The PC finance critic said they’ve heard from dozens of homeowners who had received a rebate in the past.

“This year, they’re seeing no rebates, no credit on their bill,” Stone said. They’re required to pay their full tax bill then claim it next year on their income taxes, she said.

“A lot of individuals don’t have those extra hundreds of dollars, thousands of dollars sitting around with the cost of living right now,” the member for Midland said.

“As we have been saying for a number of months, this was going to be a big problem when the NDP removed that 50 per cent property tax rebate. This was sloppy planning. And now we’re seeing the results of those sloppy decisions made by the NDP government.”

Another Winnipeg homeowner, Dave Routhier, said he was shocked when he opened his bill, which was $1,300 more than last year.

“We’re blessed that we are able to absorb the impact to our cash flow … but individuals that cannot — lower-income individuals, people on fixed incomes, retirees — it’s a huge hit to them,” Routhier said.

Sala was asked who was responsible for informing Manitobans that they needed to register their principal residence with the city or municipality to receive the credit.

“In some instances, for example, in Winnipeg, residents didn’t get that communication maybe as effectively as they should have,” Sala said.

City councillor Jeff Browaty pushed back.

“It’s a provincial tax credit program so it really is incumbent, I think, on the province to publicize this,” Browaty said.

Sala said the province isn’t responsible for school divisions raising education property taxes by as much as 26 per cent (in East St. Paul) — and that “now is not a time to be raising costs on Manitobans. ”

He said the former PC government was “not a good partner” to school divisions.

“They were not investing at levels that were required. We came in and we’ve invested meaningfully to our education system to make sure our kids can succeed.”

Alan Campbell, president of the Manitoba School Boards Association, said many boards have lost significant spending power over the last decade due to austerity measures and inflationary pressures.

The sitting government’s “return to local autonomy… is a welcome return,” Campbell said, referring to the province reinstating and supporting school boards’ taxing powers.

“School boards go through greater lengths to walk our communities through our budgets — more than any other level of government,” the veteran Interlake School Division trustee said.

— with files from Maggie Macintosh and The Canadian Press

carol.sanders@freepress.mb.ca