May 03, 2005

Property reassessment for the 2006 tax year is now underway to ensure fairness in property taxation, Intergovernmental Affairs and Trade Minister Scott Smith announced today.

Smith also announced that later this year farmland owners will receive their 50 per cent rebate on school taxes on farmland announced in the 2005 budget. The 2005 rebate will save farmers $20 million and is up from the 33.3 percent rebate that farmers received in 2004. To date, 27,523 farmers received the 2004 rebate saving over $10.1 million.

New assessment notices will be mailed to all property owners outside of Winnipeg in May, June and July. These will be used by municipalities and school divisions to determine property taxes in 2006.

"Frequent reassessments are necessary to ensure a property tax system that is fair and equitable," said Smith. "It is important to remember that an increase in assessment will not necessarily mean an increase in taxes. Only properties experiencing above-average increases may see a change in property taxes."

Assessments are used to determine how taxes will be divided among property owners. The tax rates are set by municipalities and school divisions. Property assessment is based on the market value of property at a given point in time. In this case, the reassessment reflects 2003 market values and will come into effect for the 2006 tax year.

To ensure open communication with the public and municipalities, government assessors will be holding open houses for ratepayers in 117 communities across the province. Dates, times and locations will be provided with the assessment notices.

In accordance with the Municipal Assessment Act, properties must be assessed every four years. Several factors are used in the statistical calculations that produce assessments: location, size, shape, replacement cost, age, condition, soil productivity, average selling prices and sales of similar properties in the same area.

Assessment notices are being mailed well in advance of the 2006 tax year to give property owners more time to review their assessment and discuss it with an assessor. In addition, municipalities and school divisions will have more time to finalize assessments to ensure a stable assessment base for their budgeting purposes.

The Manitoba government is continuing to reduce property taxes across the province. On top of the 50 per cent rebate, the Manitoba Education Property Tax Credit has increased to $400 since 1999. The government also continues to phase out the Education Support Levy on residential property, started in 2002, to save property taxpayers $98 million when completed.

"In addition, the Manitoba government launched the Building Manitoba Fund in Budget 2005," said Smith. "Cities and municipalities in Manitoba will benefit from an average funding increase of eight per cent over 2004 levels. This fund reflects our commitment to supporting municipalities in their efforts to deliver affordable municipal services. This move will further enhance Manitoba’s position as the second most generous supporter of municipalities."

For further information, visit the assessment website at: http://www.gov.mb.ca/assessment.

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