Kinew follows through on pledge to deduct education tax from Manitobans' bills instead of mailing cheques

Premier Wab Kinew is following through on his campaign promise to offer property owners a break on provincial taxes at the source instead of mailing out rebate cheques — but he's unable to fulfil a related pledge to stop giving breaks to out-of-province billionaires.

Kinew said Thursday Manitoba will stop mailing out 50 per cent education tax rebate cheques to Manitoba property owners in 2024. Instead, property owners will see their provincial tax component of their property tax bills drop when they receive their annual municipal property tax bills.

In Winnipeg, the city issues those bills in June. That means Winnipeggers who pay their combined provincial-municipal property taxes in monthly instalments will see their payments drop every month, beginning in July.

"You are going to save money each and every month. Instead of waiting to mail you a cheque from the government when it suits us, we're instead just going to apply this rebate of 50 per cent on your school taxes right on to your property tax bill," Kinew said Thursday at the Manitoba Legislative Building.

The former Progressive Conservative government brought in the rebate cheques. Kinew called them confusing, as sometimes a single individual would receive a rebate on property taxes paid by more than one person. 

Kinew said the change will require the government to work out arrangements with every Manitoba municipality. However, no longer mailing out the cheques will save the province about $500,000 a year, he said.

Kinew promised the change during the fall election campaign, when he also promised to stop providing rebates to billionaires who live outside Manitoba.

Kinew says that idea is proving complicated to implement, and will still be a work in progress next year.

"This is one of the things you say in Opposition, and then you get in government and it's a bit more challenging, so we're still working on that, to be frank," he said.

PC finance critic Obby Khan seized upon this comment.

"It's shocking to hear the NDP saying it's actually difficult to be in government," Khan said during a Zoom call with reporters. "It's not shocking to hear them say they can't fulfil their promises going into this campaign."

Khan said he fears the NDP won't offer any rebates on education taxes after 2024.