Get education taxes off our lawns: ‘Pay fair’ group

A coalition of Manitoba businesses and individuals says while schools are teaching kids to play fair, the way we pay for that education is anything but.

The Manitoba Education Financing Coalition wants the province to shoulder more of the cost for education — following up on an NDP promise in 2008. Currently the province pays 65.4% of education costs, the Coalition says, while the stated goal is 80%.

Municipal property taxes make up the rest, and in the city of Winnipeg that means 50% of a homeowner’s property tax bill is funding schools, the group says. The rate differs across the province.

Both the NDP and Tories have pledged changes to education funding.

Sunday, Premier Greg Selinger said that seniors would no longer have to pay the school tax if the NDP are re-elected. He also promised to eliminate the education tax on Manitoba farmland. The NDP have been taking steps toward that in tax credits over the past several years. Selinger estimated the tax cuts would cost $35 million and $14 million, respectively.

On Aug. 31, PC Party Leader Hugh McFadyen pledged to allow cottage owners to claim the $700 education property tax credit, in effect exempting cottage owners from up to 80% of the tax.

In a release, coalition chair Lorne Weiss downplayed both promises.

“The smart party is the one that stops nibbling at the corners of this issue and instead makes a serious effort to fund education properly through general revenues not property taxes.”

“In short, if the current system isn’t fair for seniors, farmers and cottage owners, it isn’t fair for any Manitoban.”

The group is advocating the province immediately begin funding 80% of education costs and move to 100% as soon as possible.

http://www.winnipegsun.com/2011/09/19/education-tax-pledges-need-improvement-pay-fair-group

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Cottage owners tell school taxes to take a hike

Education taxes are collected through property taxes in Manitoba, which means cottage owners pay twice.

Members of the Manitoba Association of Cottage Owners will camp out at the legislature this evening to protest the double taxation.

The annual rally begins at 7 p.m.

MACO also notes that cottage owners can’t vote in school board elections for their second property, despite paying the local education taxes.

The group has been protesting the school tax system since MACO was founded in the early ’90s.

MACO is also part of the Manitoba Education Financing Coalition behind letspayfair.com — arguing that school taxes should be removed from property taxes completely.

Back on Aug. 31, the provincial Tories promised to allow cottage owners to claim the $700 education property tax credit if elected Oct. 4. So far no other parties have weighed in on the issue this election.

http://www.winnipegsun.com/2011/09/15/cottage-owners-tell-school-taxes-to-take-a-hike

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Education property tax blasted

The next Manitoba government should eliminate education property taxes, even if that means dipping into Manitoba Hydro’s profits or raising income taxes to close the mega-million dollar gap.

A coalition of farmers, realtors and cottageowners launched an offensive Monday against the education tax that funds local school divisions and has become a perennial election issue.

The groups, which include the Keystone Agricultural Producers and the Manitoba Chambers of Commerce, want the levy eliminated, including immediate action to increase the province’s share of education funding to 80 per cent. Right now, it stands at about 65 per cent of day-to-day funding, though the province says it’s more like 75 per cent when capital projects and teachers’ pensions are factored in.

Monday, the groups launched what they’ve dubbed the Let’s Pay Fair campaign, which includes a website and lawn signs.

Eliminating education property taxes would leave local school boards with a collective $650-million budget gap, even with the menu of credits and rebates the NDP has introduced in the last several years to ease the sting of rising education taxes, especially for seniors and farmers.

Manitoba Real Estate Association President Lorne Weiss says education ought to be funded from general revenues just like health care.

The tax punishes those on fixed incomes because it doesn’t reflect a person’s ability to pay, he said. Seniors may live in homes that have increased in value while their pensions have stagnated. Cottagers pay education taxes twice, but can’t vote for school trustees in the division where they holiday. “This isn’t fair taxation,” said Weiss.

Weiss said he would support a small income tax increase if there was a corresponding decrease in the education tax.

Or, the coalition has suggested skimming some of Manitoba Hydro’s profits — routine practice in nearly every other province with a Crown power company.

But Hydro’s profits can fluctuate dramatically. Last year, Hydro netted $163 million, decent but well short of the $650 million education gap. And, with Manitoba Hydro’s long-term finances under scrutiny thanks to a $20 billion building spree planned for the next decade, some would argue that Hydro needs to keep every penny it earns.

At an education debate last week, all three party leaders stole some of the coalition’s thunder by committing to reducing education property taxes to the 80-20 target.

Instead of across-the-board cuts, it’s likely all parties will choose to bolster the existing credits and rebates that have already shaved hundreds of dollars off property tax bills.

Liberal Leader Jon Gerrard will unveil a promise later in the campaign to eliminate the education levy for seniors. And on Monday, leaked details of the Conservative party platform included a $700 property tax credit to cottage owners.

A Tory spokesman categorically ruled out raising income taxes to pay for education.

NDP MLA and party spokeswoman Jennifer Howard said the same, adding that farmland has already reached the 80 per cent target thanks to one of several NDP rebate programs.

http://www.winnipegfreepress.com/local/Education-property-tax-blasted-128666318.html

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Moving Manitoba families forward with tax cuts

Finance Minister Rosann Wowchuk introduced the Budget Implementation and Tax Statutes Amendment Act which would implement Budget 2011 and provide $65 million in tax cuts for families and businesses this year.

We have stayed on track with our five-year economic plan to ensure families have access to vital front-line services and also deliver significant tax savings for families. This year, tax cuts will save a family of four $212 and by 2014 that same family of four will save $374 a year.

The bill will deliver on nearly $110 million in new tax reductions once they are fully implemented and would freeze or reduce major taxes for the 12th consecutive year. Tax reductions proposed for families and property owners include:

• Increasing the basic Education Property Tax Credit by $50 to $700, which would save renters and homeowners an extra $16 million this year.

• Increasing basic personal income tax exemptions by $1,000 over four years, starting with $250 this year. By 2014, an additional 22,000 Manitobans would no long pay Manitoba income tax.

• Implementing a new Children’s Arts and Cultural Activity Tax Credit, to help parents introduce their children to activities such as art, music, drama, language instruction, environmental activities and personal tutoring.

• Increasing the maximum seniors’ Education Property Tax Credit by $150 to $950 in 2011. This credit would rise by $75 to $1,025 in 2012 and by another $75 to $1,100 in 2013.

• Increasing the Primary Caregiver Tax Credit by 25 per cent to a maximum of $1,275 to assist families caring for elderly Manitobans and other loved ones.

• Increasing the Farmland School Tax Rebate to 80 per cent from 75 per cent, which would save farmers an additional $2 million this year for a total of over $35 million annually.

This legislation would guarantee that provincial revenue sharing with municipalities will be no less than one-seventh of provincial sales tax revenue.

The minister noted the provincial small business income tax and the general corporation capital tax were completely eliminated this year. Other tax reductions for business would include:

• Increasing the Green Energy Equipment Tax Credit to 15 per cent from 10 for installations of geothermal heating systems.

• Creating a new Cultural Industries Printing Tax Credit to provide a 15 per cent refundable credit to support Manitoba-based printers.

• Providing a Capital Tax Exemption for small banks to attract and encourage the expansion of small, innovative financial institutions in Manitoba.

• Introducing a new employee share purchase plan tax credit to help business succession planning.

http://www.mysteinbach.ca/blogs/2253.html

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School division pitches tax hike







People who live in Winnipeg’s largest school division will likely be paying more in school taxes this year.

Trustees for the Winnipeg School Division (WSD) have tabled a draft budget calling for a hike in the education property tax levy of 1.9 per cent.

That translates into $19 more in property taxes on most homes. That number is based on the recent property tax reassessment in which the average assessed value on a home increased by 74 per cent, according to the WSD.

The draft budget of $331.1 million will sustain existing programs but does not include funding for new ones.

If that is needed, the money will be found through a reallocation within the budget, Kristine Barr, chair of the board of trustees’ finance and personnel committee stated in a press release issued Thursday.

“We are mindful of the current challenges in the economy and the importance of preparing our students for the future,” Barr stated, noting this is the third consecutive year the division’s tax levy increase will be below two per cent.

“Despite increasing cost pressures in all categories of expenditures from water and heating costs to salaries and benefits, the overall increase in expenditures in the budget has been kept at 2.5 per cent,” she stated.

The board will consult with stakeholders on the draft budget throughout February before making a final decision.

That includes a public forum Feb. 22 at 7 p.m. at the board office on Wall Street.

Established in 1871, the WSD is the largest of six public school divisions in the city. It includes 77 schools and more than 33,000 students.

http://www.cbc.ca/news/canada/manitoba/story/2010/02/04/mb-school-taxes-increase-winnipeg.html

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Education property tax reduced for Manitobans





Manitoba homeowners will soon get more relief on their tax bills.

Premier Greg Selinger announced on Thursday that the education property tax credit will increase from $650 to $700.

Homeowners will have the credit subtracted from their property tax bills starting this summer while renters will receive the increased benefit when they file their 2011 income tax returns.

The EPTC has been increased by 180 per cent to $700 from $250 in 1999, Selinger said.

According to Statistics Canada, Manitoba is the only province in the country to see property taxes remain relatively stable since 2000.

There has been a 1.2 per cent increase overall in that time in Manitoba, while the average Canadian increase has been 33.7 per cent.

http://www.cbc.ca/news/canada/manitoba/story/2011/03/31/mb-education-property-tax-manitoba.html

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Tax relief comes in the form of an increased credit



Manitobans will be saving an additional $16 million in taxes, thanks to a recent increase in the Education Property Tax Credit.

The bump, which sees the credit increasing from $650 to $700, was announced Thursday by Premier Greg Selinger. Homeowners will have the credit subtracted from their property tax bills starting this summer, while residential tenants will receive the increased benefits when they file their 2011 income tax returns.

“Our government is proud to meet our commitment to hard-working Manitoba families,” Selinger said in a recent news release, “We want to make life better for Manitobans and this tax credit will help keep our province affordable with benefits to over 293,000 homeowners and 128,000 tenants.”

http://www.globalwinnipeg.com/relief+comes+form+increased+credit/4537225/story.html

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Education department releases financial data

How can the province and education property taxpayers pump $93 million of new money into the public school system this year, yet have spending go up by $72.5 million?

How can spending within the $1,816,127,082 public school system go up by 4.2 per cent this year, but record spending per student increase by 4.6 per cent?

OK, the numbers in the department of education’s annual financial report are mind-boggling, and the funding of Manitoba public education is complex.

But let’s try.

The answer to the first question is that the NDP has switched its funding focus from improving the quality of education, to freezing, or at least holding down, education property taxes.

Money going into the system exceeds money spent because the province offered tax incentive grants to divisions willing to freeze their taxes. It increased education property tax credits, money which comes off property owners’ tax bills without ever going into a classroom. And the government ordered school divisions to spend their surpluses down to two per cent of revenue — in effect, spending “old” money in contingency reserve funds — rather than raise taxes.

Only 12 divisions passed up the tax incentive grants back in March when they set mill rates for this school year.

Those divisions chose to raise property taxes, because they believed that the price for tax freezes would mean cutting jobs, programs or services, or passing up improvements.
But the second question — how can spending per student go up at a higher rate than spending?

Those provincial data suggest that as enrolment declines — as it has been throughout the decade — that school boards are not reducing the number of people on the payroll. So even though there are fewer students, there are just as many classroom teachers, administrators, and resource teachers.

Opposition leader Hugh McFadyen said Wednesday that he has no problem with lower class sizes: “That is a good thing. It’s a reflection of the decline in enrolment. As a parent, I think it’s positive.”

But McFadyen said administration costs should be dropping as student numbers fall — keep the frontline teachers, but find ways to cut overhead, he said.

“The government has used tax-incentive grants to temporarily keep property taxes down,” but that’s not sustainable, McFadyen said.

Former education minister Peter Bjornson had threatened to cap education spending in this coming March’s budgets, and possibly even impose tax freezes across Manitoba. He had not committed to continuing tax-incentive grants to help achieve tax freezes.

Bjornson is gone and his successor, Nancy Allan, will not grant media interviews, at least until the end of the month, say her aides.

Meanwhile, if you want proof schools have as many teachers while students decline, try this — the pupil/teacher ratio dropped this year from 17.6 kids per classroom teacher to 17.4, the pupil/educator ratio from 14 to 13.9.

Look almost anywhere in the system, and costs per student go up faster than overall costs.

Student support services are up 4.8 per cent, for example, but by 5.2 per cent per student.

OK, you’re asking, doesn’t overall spending of 4.6 per cent exceed inflation?

Of course it does, but the base wage increase for teachers for several years has been three per cent plus cash bonuses of as much as $500, and many teachers also receive increments as they move up in seniority.

Louis Riel School Division settled this year for a contract that gives each teacher pay equal to the highest rate paid anywhere else in the city for that teacher’s level of qualifications and years of service, a contract the Manitoba Teacher’s Society’s website says is an overall 4.82 per cent increase. It’s likely many teachers elsewhere will seek a similar deal for 2010-2011.

There are other intriguing tidbits to be found amid the number-crunching.

While enrolment is inexorably dwindling, schools are busing an additional 697 kids this year, and running buses almost 500,000 more kilometers — where there’s been growth, it’s phenomenal rural growth, primarily in the rural areas around Steinbach and Winkler.

http://www.winnipegfreepress.com/local/education-department-releases-financial-data-70603797.html

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Your 2010 reassessment notice

You will have received one or more of the following types of assessment notices:

•a real property notice for buildings and land
•a personal property notice for certain equipment or machinery
•a business notice, if you operate a commercial enterprise and your municipality levies a business tax or fee

This updated assessment may affect your 2010 property taxes. Please take a few minutes to review your notice, including the important information on the back.

The Manitoba Government is reducing property taxes across the province by:

•increasing the Education Property Tax Credit since 1999, to $650 in 2009.
•eliminating the Education Support Levy on residential property, saving residential taxpayers $100 million annually.
•increasing the Farmland School Tax Rebate to 75% in 2009 from 33.3% in 2004.

Why has my property been reassessed?

Under provincial legislation, all properties across Manitoba are being reassessed regularly to:

•ensure taxes are fairly shared according to the assessed value of owned or leased properties.
•ensure assessed values keep pace with real estate market conditions.
•help property owners understand and evaluate their assessments.

When does this new assessment become effective?

The new assessment becomes effective in 2010, and will be used on your 2010 property tax statement. Assessment notices are being mailed well in advance of the 2010 tax year to benefit:

•you as a property owner, as you will have more time to review your assessment and discuss it with an assessor.
• your municipality, as there will be more time to finalize assessments before the final roll is needed for tax purposes in 2010.

How can I get more information about assessments?

On the Internet

You can obtain assessment information via the Internet at www.gov.mb.ca/assessment where you will find:

•answers to frequently asked questions
•assessments of all properties in Manitoba except in Winnipeg (Winnipeg assessments are available at www.winnipegassessment.com)

Meet an assessor in a community near you

As well as being available at our offices, assessors will hold Open Houses in many communities, offering you a convenient opportunity to discuss your assessment. Dates and locations for the Open Houses are listed on the back of this brochure.

Property Tax Assessments to be Mailed Soon

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2010 Property Tax Update

The following are types of assessment notices, you may anticipate receiving one or two of the under mentioned:

•A real property notice for buildings and land
•A personal property notice for certain equipment or machinery
•A business notice, if you operate a commercial enterprise and your municipality imposes a business tax or fee

This updated assessment may affect your 2010 property taxes. I may suggest you to take a few minutes to scan and review this to supply you with recent information regarding land tax matters.

The Manitoba Government is reducing property taxes across the province. This is done by increasing the Education Property Tax Credit since 1999, to $650 in 2009, eliminating the Education Support Levy on residential property, saving residential taxpayers $100 million annually, and increasing the Farmland School Tax Rebate to 75% in 2009 from 33.3% in 2004.

Property Tax Assessments to be Mailed Soon

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