Unregistered properties behind confusion over missing homeowners rebate on city tax bills

After a promised school tax credit didn’t show up on some city property tax bills this year, the provincial government is laying out options for people to claim the money.

The missing Manitoba Homeowners Affordability Tax Credit on some Winnipeggers’ bills — which were mailed out May 8 — sparked confusion and complaints.

Many appeared unaware that new homeowners must officially register their home with the city as a principal residence to get the credit, as must anyone not previously registered.

Those who didn’t register did not receive the credit, which deducts $1,500 from most bills.

Those who missed out were initially told they could claim it on their income taxes next year.

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

On Wednesday evening, a provincial spokesperson told the Free Press the Manitoba government has now directed the city to let the money flow sooner.

“We will ensure anyone who should get the credit, gets the money they are entitled to,” the spokesperson said in an email.

A bulletin sent to the city notes the provincial government is extending the time frame for principal residence owners in the city to declare they are eligible for the credit in order to receive it this year.

If the credit doesn’t appear on a property tax bill, the owners have until Nov. 15 to declare the property to be a principal residence, the memo notes. Affected homeowners who make monthly tax payments would then receive payment adjustments or a cheque to account for the credit, while those who pay annually would receive a cheque or a credit.

“A notice to potentially impacted property owners will be sent by the City of Winnipeg and questions can be directed to the City of Winnipeg’s Assessment and Taxation Department,” the memo states.

On Wednesday morning, Winnipeg city council’s finance chairman said initial feedback indicated thousands of Winnipeggers didn’t understand what was required to get the rebate on their initial bill.

Coun. Jeff Browaty said the city and province were working to ensure refunds and/or bill adjustments would be offered, noting some Winnipeggers need the money even more now, amid rising prices.

“(It) is a fair amount of money, considering this replaces the (education tax) credit that was there last year…. Getting the $1,500 now (would help),” said Browaty (North Kildonan).

In an email, a provincial spokesperson said Winnipeg and Brandon are the only cities that administer their own taxes, while the province handles taxation for other municipalities. The statement said Brandon offered multiple proactive notices of the registration requirement.

Browaty said the province is responsible for ensuring homeowners know how to apply for the rebate.

“It’s their credit. They should be the ones who communicate how you’re eligible for it,” he said.

To help sort through the confusion, the Free Press sought answers Wednesday to spell out how education tax rebates have changed and why some people have yet to receive the latest one, including the following key questions:

Q: How is a municipal and school tax bill calculated?

A: Municipal property taxes and school division taxes are noted in separate charges on the same tax bill. The city is required to collect taxes on behalf of school divisions but the municipality neither sets the rate nor keeps the revenue.

To calculate municipal tax, the assessed value of a home is multiplied by a taxable portion, which the province currently has set at 45 per cent for residences.

That “portioned value” is then multiplied by the sum of a mill rate divided by 1,000. The same process applies to school division taxes, which have separate mill rates set by each school division.

Q: What is the Manitoba Homeowners Affordability Tax Credit?

A: For the 2025 tax year, a former 50 per cent school tax rebate has been eliminated for residential properties.

A separate education property tax credit, set at up to $350 in 2024, was replaced with the new Homeowners Affordability Tax Credit, which will rise “to a maximum of $1,500,” according to the Manitoba Finance website. The new rebate applies to principal residences only, not rental properties, secondary homes/cottages or commercial properties.

The website notes the actual credit provided “is the lesser of $1,500 and the gross school taxes on your principal residence.”

Those who buy a home must officially register it as their principal residence with their municipality to get the credit, as must anyone who hasn’t registered in the past.

Those who didn’t register did not receive the credit on their recent bill. Those who did should see the credit noted in the school tax portion of the bill.

The registration step has been required to qualify for some school tax credits since 2018.

Q: If the credit is not on my tax bill, how can I claim it?

A: Initially, residents were told they can apply for a credit to get the rebate when they file income taxes next year. The late-Wednesday update notes they can now skip that wait.

Browaty urged all Winnipeggers who have not done so to register their principal residence now.

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

The city says that form needs to be submitted only once.

Browaty said those who didn’t get the credit this year may also be missing some past education property tax credits. He urged residents who did not previously register properties as principal residences to check with a tax expert on whether they can claim a $350 rebate for each of 2023 and 2024, as well as $437.50 rebate for 2022.

Q: Why can a bill in one area of Winnipeg be significantly higher than in another?

A: Each overall tax levy is affected by an individual home’s assessed value, the tax rate applied by the city and a separate tax rate applied by their local school division.

In March, a report to Winnipeg city council noted some school divisions imposed significant tax increases this year. For example, the owner of a $371,100 sample home in the Louis Riel School Division was set to pay $316 more in school taxes this year, the report noted.

Since each division’s rate varies, the tab can be several hundred dollars more in one division than in another, Browaty said. He said homeowners with higher-than-average home values may also pay significant education tax increases, since the 50 per cent education tax rebate has ended.

Q: Is there any way to appeal your tax bill?

A: In the City of Winnipeg, residents can file an application to the Board of Revision, a quasi-judicial body, to have the assessed value of their home revised but cannot appeal the tax bill itself.

Assessment review applications to alter this year’s tax bill were due by July 2, 2024.

Board of revision decisions on assessed value can be appealed to the Manitoba Municipal Board within 21 days of the board’s decision. Those questioning whether a property should be taxed can appeal board decisions to the Court of King’s Bench.

Q: Who should I contact if I have questions about my tax bill?

A: Browaty said his North Kildonan ward residents are welcome to send questions to him directly.

City of Winnipeg tax bills note those with school tax credit questions can call 1-866-626-4862 or visit Manitoba.ca

joyanne.pursaga@freepress.mb.ca

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