1st Annual Capital Region Property Tax and Utility Charge Survey Released

Report

WINNIPEG: A survey released today by the Canadian Taxpayers Federation shows that Winnipeg is pulling up the rear as a choice location for individuals and families to buy or build a home. Winnipeg placed last among eleven communities surveyed in the Capital Region for the least expensive residential property taxes and utility charges.

"Discount shoppers in the real estate market will generally find better deals on property taxes and utility charges on the outer-limits of the Perimeter Highway," noted Victor Vrsnik, CTF provincial director.

According to the 2001 Capital Region Residential Property Taxes and Utility Charges Survey, Winnipeg is the most expensive community to keep a home assessed at $100,000, costing on average $4,964 for annual property taxes and utility charges in 2001.

By contrast, Lorette in the RM of Tache stands out as the least expensive location to own the same home. Lorette's total annual property taxes and utility charges were $3,438. Runners up were East St. Paul at $3,647, Stonewall (Rockwood RM) at $3,761 and Rivercrest (West St. Paul) at $3,848.

Winnipeg's poor showing in the Capital Region's "cost-of-keeping-a-house" index explains the city's motivation to reduce its reliance on property taxes as a revenue source. But despite 2-years of an overall 4% property tax cut and the benefit of economies-of-scale, Winnipeg is still in dead last position.

"City Council will have to double its efforts to ease the property tax burden to stave off the lure of cheaper property taxes and utility charges in the bedroom communities," said Vrsnik.

The survey was conducted to complement the work of the Regional Planning Advisory Committee - recently created to advise the province on the drafting of a new Capital Region policy plan. The CTF recommends that the Committee's "tax-sharing" proposals do not penalize cost-effective communities through any form of income redistribution.

Findings

Residential Property Taxes

• Winnipeg's total residential property tax of $2,774, including municipal and school taxes for a house assessed at $100,000 ranked the highest among the eleven municipalities surveyed in 2000. Lorette charged the lowest tax levy at $1,449. Winnipeg's total tax was $758 higher than the Region average of $2,016.

Utility Charges

• Winnipeg's total average annual utility charges of $2,189 for a single-family house ranked the fourth highest in the Capital Region. Stonewall posted the lowest utility charges at $1,772 while Elie had the highest charges at $2,504. Winnipeg's total utility charges were $73 higher than the Region average of $2,116.
• Winnipeg's base annual telephone charge of $342 was $5 higher than the Region average of $337. Winnipeg's annual power charge of $644 for 750 KWH per month of consumption was $21 lower than the Region average of $665. Winnipeg's annual natural gas charge of $520 for 90 cubic meters per month of consumption was $12 higher than the Region average of $508. And Winnipeg's annual water and sewer charge of $684 for 82 cubic meters per month of consumption was $77 higher than the Region average of $607.

Combined Residential Property Tax and Utility Charges

• Winnipeg's combined cost of annual property taxes and utility charges at $4,964 for a single-family house assessed at $100,000 ranked the highest among the eleven municipalities surveyed. Lorette had the lowest combined cost at $3,438. Winnipeg's total combined cost was $831 higher than the Region average of $4,133.