Mixed reviews for proposed Winnipeg property tax increase

The prospect of the largest municipal property tax hike in 34 years is getting mixed reviews from Winnipeg homeowners and policy analysts.

Mayor Scott Gillingham plans to propose a 5.95 per cent municipal property tax increase for 2025, according to city hall sources CBC News is not identifying because they were not authorized to divulge details of next year's budget, whose first draft is due to be made public Wednesday.

The hike would be the largest in Winnipeg since a city council led by former mayor Bill Norrie approved an 8.45 per cent property tax increase in 1990.

Should city council approve a 5.95 per cent hike when the 2025 budget comes to a vote in January, the average Winnipeg homeowner will pay the city an additional $121 next year.

Several homeowners said they don't support the increase.

"It hurts," said Jack Stuart, speaking outside his home in Crescentwood on Monday. "The city could cut back on things in their budget that aren't needed instead of hitting homeowners with the property tax."

Stuart said he does not see any additional value from the city in terms of they services they provide following a municipal tax increase.

Leigh Henningson, who owns a home in Wolseley, said he is disappointed the city is increasing the pool of revenue it collects from property taxes while the province has cut its own property taxes, which pay for education — a form of taxation he supports.

"Generally, I don't have a problem with property taxes. Where it goes is more of an issue. I find the city wastes money on a lot of things," Henningson said Monday outside his home.

Gage Haubrich, the Prairie director for the Canadian Taxpayers Federation, a right-of-centre think tank, said Gillingham would be breaking a 2022 election promise if council proceeds with the 5.95 per cent tax hike.

"He promised that property tax hikes were going to be 3.5 per cent," Haubrich said via Zoom from Saskatoon.

"The very least the mayor should do is stick to his promises."

Haubrich said instead of raising property taxes, the city should cut back on non-core services, such as public art.

The City of Winnipeg spent $125,000 on public art in 2024. A 5.95 per cent property tax increase would raise approximately $44.4 million in 2025.

Gillingham has made numerous statements in recent months about a shortage of city revenue to pay for basic services such as policing and road repairs.

Niall Harney, a senior researcher with the Canadian Centre for Policy Alternatives, a left-of-centre think tank, said Winnipeg has fallen behind other Canadian cities when it comes to tax increases and is now moving closer in line to other municipalities.

"As Winnipeg has fallen behind in terms of its revenues, departments like community services have really taken the brunt," Harney said at his office in Winnipeg.

He said the city has been spending less, on a per capita basis, on recreation, libraries, parks and trees, and could use more property tax revenue to fund those areas.