2003 Manitoba Residential Property Taxes and Utility Charges Survey December 18, 2003 Prepared by: Adrienne Batra Provincial Director Canadian Taxpayers Federation - Manitoba 2003 Manitoba Property Taxes and Utility Charges Survey Table of Contents Introduction..........................................................................................................................2 Survey Terms of Reference ................................................................................................3 Findings .................................................................................................................................5 Final Comments...................................................................................................................8 Table 1: Average Annual Residential Property Taxes ..................................................9 Table 2: Average Annual Increase/Decrease ............................................................13 Table 3: Breakdown of Property Taxes..........................................................................17 Table 4: Average Annual Utility Charges .....................................................................21 Table 5: Average Annual Utility Charges and Property Tax......................................25 References .........................................................................................................................29 Appendix I ..........................................................................................................................30 Canadian Taxpayers Federation – Manitoba 1 2003 Manitoba Property Taxes and Utility Charges Survey Introduction The 2003 Manitoba Residential Property Tax and Utility Charges Survey is the only annual survey to track and record the basic living costs for residential property owners across Manitoba. It comes as a supplement to the Canadian Taxpayers Federation’s Capital Region Residential Property Tax and Utility Charges Survey. The question on the minds of many individuals and families in the real estate market is how communities in Manitoba compare with their neighbors in terms of the cost of residential property taxes and utility charges. This survey attempts to answer this question alone. It does not explore other variables that influence a home-buyer’s decision to relocate outside city limits, such as the crime rate, real estate prices and access to large property lots and monster-sized houses. The property tax survey serves as a useful measurement of the comparative tax burden. The survey is not intended to measure the benefits accrued to homeowners in return for their property taxes. Rather, it registers the price that is paid for a product: local government. It is not a reflection of the quality of the product or value for tax dollars. The survey should neither be used to compare management efficiency among local governments, nor to compare "value for services” offered by individual municipalities. Although property tax differences can be partially attributed to management efficiency, the latter does not pre-determine the former. Other factors affect property tax rates, such as the sources of operating revenue and the extent and cost of municipal services provided. Canadian Taxpayers Federation – Manitoba 2 2003 Manitoba Property Taxes and Utility Charges Survey Outline Where necessary, the survey selected high-density residential communities in the province that share the same utilities. Communities that were inconsistent with the other communities in terms of water and/or sewer services were excluded. The survey is divided into five sections. The first section compares residential property taxes levied across Manitoba for single-detached properties assessed at $100,000 for the years 2000, 2001 and 2002. The property tax survey includes the general municipal tax, the provincial education support levy and the special school levy, but does not include local improvement levies or the Manitoba Education/Property Tax Credit advance. The second section breaks down the year to year fluctuation of property taxes on a $100,000 house from 2000 – 2002. Section three breaks down residential property taxes into three components: the general municipal levy, the provincial education support levy and the special school levy for a $100,000 house in 2002. In cases where a municipality borders on more than one school division, the largest school division was selected for comparison. For example, the special school levy for the City of Winnipeg was based on values derived from Winnipeg School Division Number One, the largest division in the city. The fourth section of the survey compares the cost of average annual utility charges for a singe-family house in the Capital Region in 2002. Utility charges include telephone, power, gas, water and sewer. Finally, section five combines the property taxes and utility charges for a $100,000 single-family house in 2002. Property Tax • General Municipal Levy – The portion of property taxes collected that is set by and paid to the municipality. • Education Support Levy – The portion of property taxes collected that is set by and paid to the Province of Manitoba. • Special School Levy – The portion of property taxes collected that is set by and paid to the School Board. Canadian Taxpayers Federation – Manitoba 3 2003 Manitoba Property Taxes and Utility Charges Survey Telephone Base residential telephone rates range from $23.50 to $25 per month, and include GST and PST. Hydro Power rates are based on the consumption of 750 KWH per month for an average of $46.04 per month. Rates shown include GST and PST and a $6.25 basic monthly charge. The City of Winnipeg tacks on another 2.5% in hydro tax. Natural Gas The natural gas rate is based on the consumption of 90 cubic meters per month for an average of $42.97 per month. Rates shown include GST, 1.7% Provincial Utility Tax, and a $10 basic monthly charge. The City of Winnipeg tacks on another 2.5% natural gas tax. Water and Waste Water and sewer rates are based on consumption of 82 cubic meters, 18,063 gallons, or 2,900 cubic feet per quarter. Rates vary from one community to another. Canadian Taxpayers Federation – Manitoba 4 2003 Manitoba Property Taxes and Utility Charges Survey Summary of Findings 2002 Residential Property Taxes for a $100,000 House Capital Region Average $2,038 High: Winnipeg $2,860 Low: RM of East St. Paul $1,771 Central Plains Region Average $2,406 High: RM of Lakeview, Langruth $3,131 Low: RM of North Norfolk, Austin $1,837 Eastman Region Average $1,926 High: Village of Powerview $2,522 Low: City of Steinbach $1,442 Interlake Region Average $2,102 High: RM of Eriksdale $2,576 Low: RM of Gimli $1,755 Northern Region Average $3,955 High: Town of Lynn Lake $9,765 Low: RM of Kelsey, Cranberry $2,094 Parkland Region Average $2,833 High: Village of Winnipegosis $3,571 Low: Town of Swan River $2,254 Pembina Valley Region Average $2,411 High: Village of Cartwright $3,689 Low: RM of Morris, Rosenort $1,613 Westman Region Average $2,593 High: Town of Birtle $4,070 Low: Village of Wawanesa $1,971 Canadian Taxpayers Federation – Manitoba 5 2003 Manitoba Property Taxes and Utility Charges Survey 2002 Utility Charges Capital Region Average $2,085 High: RM of Cartier, Elie $2,482 Low: RM of Tache, Landmark $1,714 Central Plains Region Average $2,120 High: RM of Portage La Prairie, Oakville $2,346 Low: RM of Westbourne, Plumas $1,956 Eastman Region Average $1,990 High: RM of Franklin, Dominion City $2,816 Low: RM of Hanover, Grunthal $1,772 Interlake Region Average $2,229 High: RM of Woodlands, Warren $2,816 Low: Town of Gimli $1,934 Northern Region Average $2,027 High: Town of Churchill $2,379 Low: Town of Lynn Lake $1,777 Parkland Region Average $2,240 High: RM of Silver Creek, Angusville $3,107 Low: Village of Binscarth $1,959 Pembina Valley Region Average $2,059 High: Town of Emerson $2,350 Low: Town of Carman $1,907 Westman Region Average $2,120 High: RM of Blanshard, Oak River $27.34 Low: Village of St. Lazare $1,703 Canadian Taxpayers Federation – Manitoba 6 2003 Manitoba Property Taxes and Utility Charges Survey 2002 Combined Property Taxes and Utility Charges for a $100,000 House Capital Region Average $4,122 High: City of Winnipeg $5,094 Low: Town of Stonewall $3,707 Central Plains Region Average $4,526 High: Town of Gladstone $5,134 Low: RM of Grey, Elm Creek $4,091 Eastman Region Average $3,915 High: RM of Franklin, Dominion City $4,526 Low: City of Steinbach $3,281 Interlake Region Average $4,237 High: RM of Woodlands, Warren $4,639 Low: RM of Gimli $3,917 Northern Region Average $5,982 High: Town of Lynn Lake $11,542 Low: RM of Kelsey, Cranberry $4,150 Parkland Region Average $5,073 High: Village of Winnipegosis $5,954 Low: Town of Swan River $4,411 Pembina Valley Region Average $4,540 High: Village of Cartwright $5,648 Low: Town of Morden $3,630 Westman Region Average $4,719 High: Town of Deloraine $6,128 Low: Town of Rivers $3,865 Canadian Taxpayers Federation – Manitoba 7 2003 Manitoba Property Taxes and Utility Charges Survey Final Comments It is important to keep in mind that tax rate increases are not the only problem with property taxes. Property taxes in general are easily the most destructive, regressive and complicated forms of taxation: • They are charged to property owners regardless of income or ability to pay. Therefore, they can be an unreasonable burden on struggling farmers and home owning seniors on fixed-incomes (to cite two examples); • They bear little relationship