Proposed legislation that would support cottaging opportunities for Manitoba families with a new tax deferral program was introduced by Finance Minister Rosann Wowchuk.
“Manitoba has some of the most spectacular cottage country anywhere,” said Wowchuk. “With the highest level of cottage ownership across Canada, we are working to ensure that Manitoba families continue to enjoy recreational opportunities available right in our own backyard while managing property tax payments.”
Wowchuk said this proposed legislation would build on the Manitoba government’s efforts to ease pressures from property taxes including:
• increasing the Education Property Tax Credit to $650 in this year’s budget, up from $600 last year and $250 in 1999;
• increasing the Farmland School Tax Rebate to 75 per cent, up from 70 per cent in 2008 and up from 33 per cent when it was created in 2004; and
• phasing-out the residential Education Support Levy, beginning in 2002 and completed in 2006, saving homeowners $100 million a year.
Since 1999, annual property taxes have been reduced by over $250 million, the minister said. According to Statistics Canada, Manitoba is the only province where property taxes have declined. Since 2000, they have decreased by 0.5 per cent. Saskatchewan property taxes have increased 21.6 per cent since 2000.
The proposed legislation would introduce a new provincially delivered and financed property tax deferral program for cottage owners where property taxes are increasing as a result of the 2010 general reassessment. Assessments of cottage properties are increasing more than other types of properties, reflecting Manitoba’s continuing strong cottaging market.
The new cottage property tax deferral program would be available in 2010 and 2011. Under the program, Manitobans would apply to the province to defer payment of their property tax increases for 2010 and 2011 relative to 2009. The province would pay the tax increase to the municipality on behalf of the cottage owner. A cottage owner would repay the province the amount of deferred taxes with interest charged at a nominal rate when the property is no longer owned by that person or their spouse or common-law partner.
Applications for the cottage property tax deferral program would be available prior to owners receiving their 2010 property tax bills.
This new initiative continues to build on other initiatives to promote Manitoba’s image as an affordable recreation destination including the commitment to make available to Manitobans 1,000 new lots under province’s cottage lot program over the next two years.
