Posted on 10/07/2010, 7:00 am, by mySteinbach

City Council Candidate Susan Penner says property tax bills that were due last week have led numerous people to ask her why their tax bills went up even though Steinbach’s mill rate went down.
 
Says Penner, “Now that property assessment is taking place every two years, using mill rate as a benchmark is misleading. Property owners need to know that a drop in mill rate does not necessarily mean property taxes will go down.”

“For example, Steinbach’s mill rate went down from 16.8 to 14.76 in 2010. However, tax bills went up an average of 20%, with increases up to 40% for some property owners. To say the mill rate went down doesn’t really mean anything when taxes go up by the equivalent of two mills.”
 
“To hold the line from last year, the mill rate would have gone down even further – to 12.76. In fact, the added assessment for 2010 contributed almost $1 million to city coffers. To have a 20% tax increase on top of the added assessment shows that significant spending is occurring.”

When asked if she is against any tax increases Penner responds, “At times cities need to increase taxes for major capital projects but at the end of the day, if Steinbach is to remain an affordable place for businesses and families, taxes need to remain relatively stable. Borrowing millions of dollars in long term debt increases taxes and hurts business. Since business and industry provide jobs, it is important to keep Steinbach business friendly.”

“There are also many fixed income and one income seniors and families in Steinbach. Higher taxes means these households have to give up essential items in order to pay for their increased tax bill.”

Penner continues “What speaks to people is affordable and stable taxes and debt that is kept under control. I prefer to talk in terms of tax dollars and not of mill rates.”