May 20, 2022

Winnipeg
5° C, Overcast

Full Forecast

Contact Us Subscribe Manage Subscription Chat with us
Log in Create Free Account Help Chat with us
    • Contact Us
    • Advertising Contact
    • Submit a News Tip
    • Subscribe to Newsletters

    • Finding your
      information

    • My Account
    • Manage my Subscription
    • Change Password

    • Grid View
    • List View
    • Compact View
    • Text Size
    • Translate

    • Log Out
    • Log in
    • Create Free Account
    • Help

    • Grid View
    • List View
    • Compact View
    • Text Size
    • Translate
  • Coronavirus Coverage
  • Replica E-Edition
    • About the E-Edition
    • Winnipeg Free Press
    • Community Review East
    • Community Review West
  • Above the Fold
  • Front page
  • Arts & Life
    • All Arts & Life
    • The Arts
    • Autos
    • Books
    • Book Club
    • Cannabis
    • Celebrities
    • Diversions
    • Puzzles
    • Environment
    • Events
    • Faith
    • Food & Drink
    • Your Health
    • Life & Style
    • Movies
    • Music
    • Science & Technology
    • TV
    • Travel
  • Business
    • All Business
    • Agriculture
    • Personal Finance
    • Manitoba's Top Employers
  • Canada
  • Local
  • Opinion
    • All Opinion
    • Analysis
    • Columnists
    • Editorials
    • Editorial Cartoons
    • Letters to the Editor
    • Send a Letter to the Editor
  • Sports
    • All Sports
    • Amateur
    • Auto Racing
    • Blue Bombers
    • Curling
    • Football
    • Goldeyes
    • Golf
    • High School
    • Hockey
    • Horse Racing
    • Winnipeg Jets
    • Manitoba Moose
    • WHL
    • MLB
    • NBA
    • Olympics
    • Soccer
  • World
  • The Star
  • Reader BridgeNEW
  • WFP EventsNEW
  • About Us
    • About Us
    • Advertising
    • Contact Us
    • Carrier Positions & Retailer Requests
    • FP Newspapers Inc.
    • History
    • Internships
    • Job Opportunities
    • News Café
    • Privacy Policy
    • Retail Locations
    • Staff Biographies
    • Terms and Conditions
  • Archives
  • Free Press Community Review
    • All Free Press Community Review News
    • East Edition
    • West Edition
    • Sports
    • Events
    • Contact Us
    • E-Editions
  • Classifieds
  • Contests
  • Coupons
    • All Coupons
    • Staples Copy & Print Coupons
    • Ripley's Aquariums Coupons
    • The Bay Coupons
    • Staples Canada Coupons
    • Altitude Sports Coupons
    • Nike Coupons
    • Tuango Coupons
    • Ebay Canada Coupons
    • Sport Chek Coupons
    • Roots Coupons
  • LifestylesNEW
    • All Lifestyles
    • Business Hub
    • Community
    • Drink & Dine
    • Life
    • Wellness
    • Whiskers & Wings
    • Sponsored Articles
  • Homes
    • Property Listings
    • Featured News
    • Renovation and design
    • New homes
    • Resale homes
  • Newsletters
  • Obituaries
  • Puzzles
  • Photo and Book store
  • More

©2022 FP Newspaper Inc.

Close
  • Quick Links

    • Coronavirus Coverage
    • Federal Election
    • Above the Fold
    • Home
    • Local
    • Canada
    • World
    • Classifieds
    • Special Coverage
    • Newsletters
    • Obituaries
    • Photo and Book store
    • Archives
    • Contests
    • Publications
    • Sponsored Content
    • Privacy Policy

    Ways to support us

    • Pay it Forward program
    • Subscribe
    • Day Pass
    • Support Faith coverage
    • Support Arts coverage
  • Replica E-Edition

    • About the E-Edition
    • Winnipeg Free Press
    • Community Review East
    • Community Review West

    Business

    • All Business
    • Agriculture
    • Personal Finance
  • Arts & Life

    • All Arts & Life
    • The Arts
    • Autos
    • Books
    • Cannabis
    • Celebrities
    • Diversions
    • Puzzles
    • Environment
    • Events
    • Faith
    • Food & Drink
    • Your Health
    • Life & Style
    • Movies
    • Music
    • Science & Technology
    • TV
    • Travel
  • Sports

    • All Sports
    • Amateur
    • Auto Racing
    • Blue Bombers
    • Curling
    • Football
    • Goldeyes
    • Golf
    • High School
    • Hockey
    • Horse Racing
    • Winnipeg Jets
    • Manitoba Moose
    • WHL
    • MLB
    • NBA
    • Olympics
    • Soccer
  • Opinion

    • All Opinion
    • Analysis
    • Columnists
    • Editorials
    • Editorial Cartoons
    • Letters to the Editor
    • Send a Letter to the Editor

    Media

    • All Media
    • Photo Galleries
    • Videos

    Homes

    • Property Listings
    • Featured News
    • Renovation and design
    • New homes
    • Resale homes
  • Canstar Community News

    • All Free Press Community Review News
    • East Edition
    • West Edition
    • Sports
    • Events
    • Contact Us
    • E-Editions
  • Coupons

    • All Coupons
    • Staples Copy & Print Coupons
    • Ripley's Aquariums Coupons
    • The Bay Coupons
    • Staples Canada Coupons
    • Altitude Sports Coupons
    • Nike Coupons
    • Tuango Coupons
    • Ebay Canada Coupons
    • Sport Chek Coupons
    • Roots Coupons
  • About Us

    • About Us
    • Advertising
    • Contact Us
    • Carrier Positions & Retailer Requests
    • FP Newspapers Inc.
    • History
    • Internships
    • Job Opportunities
    • News Café
    • Privacy Policy
    • Retail Locations
    • Staff Biographies
    • Terms and Conditions
The Free Press
Articles Read
Your Balance +tax
Day Pass Till
Day Pass
    • Contact Us
    • Advertising Contact
    • Report an Error
    • Send a Letter to the Editor
    • Staff Biographies
    • Submit a News Tip
    • Subscribe to Newsletters

    • Finding your
      information

    • Log in
    • Create Account
    • Help
    • Chat with us

    • Grid View
    • List View
    • Compact View
    • Text Size
    • Translate
    • My Account
    • Manage My Subscription
    • Change Password
    • Chat with us

    • Grid View
    • List View
    • Compact View
    • Text Size
    • Translate

    • Log Out
Log in Create Account Contact Us
Contact Us Manage Subscription
  • Sections
  • Local
  • Arts & Life
    • All Arts & Life
    • The Arts
    • Autos
    • Books
    • Diversions
    • Environment
    • Faith
    • Food & Drink
    • Health
    • Movies
    • Music
    • TV
    • Travel
  • Business
    • All Business
    • Agriculture
    • Personal Finance
    • Manitoba's Top Employers
  • Sports
    • All Sports
    • Amateur
    • Blue Bombers
    • Curling
    • Football
    • Goldeyes
    • High School
    • Hockey
    • Winnipeg Jets
    • Manitoba Moose
    • WHL
    • MLB
    • NBA
    • Soccer
  • Opinion
    • All Opinion
    • Analysis
    • Columnists
    • Editorials
    • Editorial Cartoons
    • Letters to the Editor
    • Send a Letter to the Editor
  • E-Edition
  • Homes
  • Classifieds
    • All Classifieds
    • Announcements
    • Automotive
    • Careers
    • Garage Sales
    • Merchandise
    • Pets
    • Real Estate
    • Rentals
    • Services
  • Lifestyles
    • Business Hub
    • Community
    • Drink & Dine
    • Life
    • Manitoba’s Top Employers
    • Wellness
    • Whiskers & Wings
    • Sponsored Articles
  • Coupons
    • All Coupons
    • Staples Copy & Print
    • Ripley's Aquariums
    • The Bay
    • Staples Canada
    • Altitude Sports
    • Nike
    • Tuango
    • Ebay Canada
    • Sport Chek
    • Roots
  • Obituaries
  • Subscribe$1.50 for 5 months
Home Local

Advertisement

Advertise With Us

City braces for biz tax shortfall

Business advocates argue tax relief needed to prevent further economic turmoil

Joyanne Pursaga By: Joyanne Pursaga 
Posted: 3:00 AM CST Friday, Jan. 15, 2021

  • Tweet
  • Share
  • Print
  • Email
  • Save to Read Later
Chris Graves of the King's Head Pub.

MIKAELA MACKENZIE / WINNIPEG FREE PRESS FILES

Chris Graves of the King's Head Pub.

The City of Winnipeg’s business tax revenues are set to take a major hit as companies buckle under pandemic closures and financial losses.

Hey there, time traveller!
This article was published 15/1/2021 (490 days ago), so information in it may no longer be current.

The City of Winnipeg’s business tax revenues are set to take a major hit as companies buckle under pandemic closures and financial losses.

The city expects to collect $3.7 million less in business taxes than it had anticipated for 2020, $2.9 million of which the municipality expects companies may never pay.

"It really does reflect the fact that businesses in the City of Winnipeg have been hurt by the health orders related to the pandemic," said Coun. Scott Gillingham, council’s finance chairman.

Gillingham (St. James) noted the $3.7-million shortfall would mark a massive increase from outstanding taxes at the end of a typical year. The report notes that amount ranged between $860,000 and $1.3 million from 2017 to 2019.

The city says $59.5 million in business taxes will be billed for 2020, based on financial data up to Nov. 30. The tax department will ask for a $1-million cost overrun after factoring in some savings and cash set aside to cover unpaid taxes.

Chris Graves, owner of the King’s Head Pub, said the city is shouldering only a fraction of the pain felt by business owners.

"I know people can’t even afford to pay their (provincial sales tax) payments right now, let alone their business taxes," said Graves.

He said he questions the fairness of business tax payments in a year when restaurants were repeatedly forced to shut down in-person dining and, at other times, operate with reduced capacity.

"At this point, we are in a six-figure deficit ourselves. The King’s Head, essentially, even with all of the government grants that we’ve been given… we’ve lost over $40,000 a month," said Graves. "It’s been absolutely brutal. We need to open up quickly."

He urged the city to eliminate business taxes altogether, which he suspects would require provincial financial support.

"We truly need relief," said Graves, who said he had to sell his home and vehicle to try to offset his business losses. "Within the next probably eight months, you’re going to see a lot more businesses absolutely collapse."

Loren Remillard, president of the Winnipeg Chamber of Commerce, echoed the call for the elimination of Winnipeg’s business tax.

"We know the hardships faced by small businesses, medium businesses because of COVID. That (elimination) would be a very strong message from city council," said Remillard.

He stressed the chamber appreciates supports the city has already offered to companies, but still hopes more relief is forthcoming. He said the full impact of the pandemic isn’t clear, as many entrepreneurs try to stay afloat long enough for COVID-19 restrictions to be relaxed.

"I think as we move through the first and second quarter of 2021, we’ll get a better sense as to the scope and depth of the negative economic impact," said Remillard.

During the first half of this year, it should also become clearer how many companies will go bankrupt, he said.

The Free Press | Newsletter

Winnipeg Gardener

What you need to know now about gardening in Winnipeg. A monthly email from the Free Press with advice, ideas and tips to keep your outdoor and indoor plants growing.

Sign up for Winnipeg Gardener
Sign Up

Gillingham noted the city has included support to ailing businesses in the 2021 budget, including an increase to the small business tax threshold that will exempt 1,000 more companies from paying the fee.

The city will also let business and property taxes be paid up to three months late without penalty in 2021 and provide $1,500 grants for businesses that were forced to close or reduce service due to pandemic health restrictions.

While the city reduced its business tax every year from 2015 to 2020 and raised the threshold in 2021, Gillingham said eliminating it abruptly would create a major financial loss for the city.

"To eliminate the business taxes in one year would create a $60-million revenue hole for the city," he said.

joyanne.pursaga@freepress.mb.ca

Twitter: @joyanne_pursaga

Joyanne Pursaga

Joyanne Pursaga
Reporter

Born and raised in Winnipeg, Joyanne loves to tell the stories of this city, especially when politics is involved. Joyanne became the city hall reporter for the Winnipeg Free Press in early 2020.

   Read full biography

Advertisement

Advertise With Us

  • Report Error
  • Submit a Tip
  • Refund
  • The Free Press is certified by

The Winnipeg Free Press invites you to share your opinion on this story in a letter to the editor. A selection of letters to the editor are published daily.

To submit a letter:
• fill out the form on this page, or
• email letters@freepress.mb.ca, or
• mail Letters to the Editor, 1355 Mountain Avenue, Winnipeg, Manitoba, R2X 3B6.

Letters must include the writer’s full name, address, and a daytime phone number. Letters are edited for length and clarity.

Advertisement

Advertise With Us

Top