A good opinion article from yesterday's Free Press from a local economics professor on the reality of property taxes in Winnipeg (
link).
For many properties in Winnipeg, the municipal portion of property tax has increased at a rate below inflation since the 1990s, yet city services are subject to inflationary pressures such as unions bargaining for wages, materials, and supplies. Compounding the issue is that inflation related to capital projects is often in excess of CPI by about 1%.
Decades of fiscal "prudence" has led to a massive deficiency in services and infrastructure, and it will take decades of smart decisions to reverse, not something that can be accomplished in one or two mayoral terms.
Doing some quick math, City documents showed that in 2022, the average property tax bill across other major Canadian cities (excluding Winnipeg) was $2,901. In Winnipeg, it was $2,173 if you include frontage levy. So the average municipal tax bill in Winnipeg is about $728 (34%) lower than the Canadian average.
Using the stats from assessment and taxation, to meet the Canadian average property tax bill, Winnipeg's mill rate would need to rise from 13.468 to 18.635. This would increase municipal tax revenue for the operating budget from $653 million to $904 million, an increase of $250 million per year.
I'm not saying we can or should implement such a drastic increase, but it does help explain the fiscal deficiency we have here in Winnipeg at a municipal level. If we taxed ourselves closer to the Canadian average, $250 million per year goes a long way to fixing more roads, fixing community centres, enhancing affordable housing programs, and adding social supports to the community.
To put things into perspective, in 2020, all Winnipeggers earned around $30 billion in income (
Source). So at $653 million in property tax, the municipality 🞵🞵🞵🞵🞵 up around 2.2% of local earnings. If we taxed closer to the Canadian average, the municipality would absorb around 3.0% of local earnings.
Food for thought.