Manitoba homeowners say they aren't getting $1,500 property tax credit promised by province

The Manitoba government faced more questions about its property tax reforms Tuesday after some homeowners did not receive a promised $1,500 credit on their annual bill.

Finance Minister Adrien Sala said there was a problem with some homeowners not registering their properties as their primary residence, which is a condition to get the credit. He put part of the blame on municipal governments.

"We know that some municipalities were more effective at communicating with residents than others and in some instances, we are seeing individuals who did not register their residence as their principal residence," Sala said.

The province is working with municipalities on a solution to get the problem fixed soon, but there was no word on when people might expect to get their money.

Dave Routhier, a Winnipeg homeowner, said he was shocked when he opened his bill. It was not immediately clear that the credit was missing, and he was told to pay $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. Like many Manitobans, Routhier opts to divide his bill into monthly payments.

The Opposition Progressive Conservatives said they have heard from dozens of other homeowners in the same situation.

Province aims to solve issue soon

Routhier said when he inquired about how to get the issue fixed, he was guided to online information that said he could submit for the credit on his income tax return next spring.

Sala said he aims to have things sorted out much more quickly.

"We're currently in conversation with the City of Winnipeg and other municipalities," he said.

The issue is the latest flare-up in an ongoing political battle over education property taxes. Unlike some other provinces, Manitoba has a dedicated property tax to help fund schools.

The NDP government, elected in 2023, eliminated a system implemented by the former Tory government that provided a 50 per cent rebate to residential property owners and an additional $350 credit for people's primary residence.

In its place, the government introduced a flat $1,500 credit that, unlike the former rebate, does not rise with higher property values and is not available to cottages, apartment buildings and other properties not occupied by the owner as a primary residence.

The NDP has touted the move as a tax savings for most Manitobans, because the credit can eliminate education property taxes for lower-value homes.

But overall, the government estimated it would pay out $148 million less in the initial year. And that figure would rise as annual property taxes increase. The Tories have said it amounts to a tax hike for a large number of people.

Routhier, who has lived in his home since 2010, said he had no idea he was supposed to register his home as a primary residence. Other people may not even realize they are missing out on the credit, he said.

"There's going to be a certain number of people that may never get this addressed."

NDP points fingers at trustees

During question period Tuesday, Premier Wab Kinew deflected some of the heat the NDP's been facing for higher property taxes onto school trustees.

"It's the school trustees who set the taxation rates. You have the opportunity to go to the ballot box next year if you're unhappy with what's happening this year," Kinew said.

However, trustees have no say in higher assessments or the new provincial tax-credit system that leaves some residents paying more.

PC Leader Obby Khan said trustees raised taxes because their divisions weren't properly funded by the province, but the president of the Manitoba School Boards Association says the province isn't blaming them.

Alan Campbell said trustees are responsible for tax rates and divisions have faced challenging fiscal conditions, ranging from enrolment growth to inadequate funding and higher salaries, for the past 10 years.