THE city is being blasted by business and taxpayers groups over a proposal to charge a $50 to $500 filing fee to property owners who appeal their property tax assessment.
Officials with the Canadian Federation of Independent Business and one of the country’s largest realty tax consulting firms said Thursday the fee could effectively deny the right of appeal to some small business owners, seniors, and low-income ea
rners who have limited resources and can’t afford even a $50 fee.
And Colin Craig, Prairie director for the Canadian Taxpayers Federation, said the proposal smacks of “gouging”. The proposal, which must be approved by city council before it can be implemented, calls for a sliding scale of fees ranging from $50 to appeal the assessment on a single-family residence or condo, to as high as $500 for a non-residential property with an assessed value of $5 million or more.
City finance committee chairman Scott Fielding defended the proposal, saying most other jurisdictions charge such fees, including the Manitoba government and the City of Brandon.
He said the purpose is twofold: to recoup some of the costs incurred in providing an appeal process, and to deter “nuisance” appeals.
He said that in the last two-year appeal cycle, more than 12,000 appeals were filed, the city spent more than $1 million to hear them, and 1,738 (15 per cent) of appellants never even showed up for their appeal hearing.
“That’s a big waste of taxpayers money, so we think it (a filing fee) makes sense.”
He also noted the fee will be refunded if the taxpayer wins the appeal.
“(So) at the end of the day, we feel it’s something that is very justifiable.”
But David Sanders, a senior tax consultant with the Winnipeg office of Altus Group Realty Tax Consultants, said the right to an appeal is a basic right that shouldn’t be restricted for any reason. “And (people failing to appear for their hearing) is part of the cost of taxing the population,” he said.
He said if the city is concerned about no-shows, there must be better ways to deter them. A filing fee ends up punishing everyone for the actions of a few.
The CTF’s Craig said there’s nothing wrong with the city charging user fees for some services, such as the use of civic swimming pools, because people don’t have to use those services if they can’t afford the fees.
“But taxes aren’t voluntary, so to charge someone an arm and a leg to have their assessment reviewed is unreasonable.”
Sanders said he plans to appear before the city’s executive policy committee next Monday, and before council on March 22, to argue against the fee.
http://www.winnipegfreepress.com/business/business-rails-at-plan-to-charge-for-appealing-assessment-117788098.html
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