Archived News Releases

April 25, 2001

Manitoba Intergovernmental Affairs is now conducting property reassessment for the 2002 tax year across the province to ensure property taxation is shared fairly, Intergovernmental Affairs Minister Jean Friesen announced today.

All property owners in Manitoba, outside of Winnipeg, will be receiving new assessment notices in May and June that will used by municipalities and school divisions for property taxation in 2002.

"Frequent reassessments are necessary to keep our property tax system equitable," said Friesen. "At the same time, it is important to remember that an increase in assessment will not necessarily result in a tax increase. Only properties with above average assessment increases may pick up a greater share of property taxes."

Assessments are used to determine how taxes will be divided among property owners, but the tax levels are set by municipalities and school divisions. Property assessment measures the value a property might sell for under normal market conditions in the given reference year. This reassessment reflects 1999 market values and will come into effect for the 2002 tax year.

As part of its ongoing municipal and public communication program, Intergovernmental Affairs assessors will be holding extensive open houses for ratepayers across the province. Dates, times and locations of the open houses will be provided with the assessment notices.

All properties are reassessed every four years in accordance with the Municipal Assessment Act to ensure assessments keep pace with changing market values. Because property taxes are paid according to the value of property, updating assessments regularly is one way to ensure all property owners are paying their fair share.

Several factors are used in the statistical calculations that produce assessments including location, size, shape, replacement cost, age, condition, soil productivity, average selling prices and sales of similar properties in the same area. Using market values for determining property assessment is an effective way to ensure comparable properties are assessed at comparable values.

In reassessment years, notices are issued in the spring to allow more time for owners to discuss assessments with the assessors. In this way, formal appeals are avoided and municipalities and school divisions have greater assurance of a stable assessment base for their budgeting processes.

The Manitoba government is continuing to reduce property taxes across the province. The Manitoba Education Property Tax Credit for homeowners has gone up $150 in the last two provincial budgets, representing an average property tax reduction of 9.4 per cent in areas outside of Winnipeg. That means up to $400 in provincial assistance will come directly off homeowners' property tax bills this year.

"In addition, Manitoba is the only province to share provincial income tax revenue with municipalities, northern communities and reserves," said Friesen. "This unique per capita grant program gives local authorities more flexibility to provide services and keep property taxes reasonable. This year every Manitoba municipality benefits due to an overall funding increase of six per cent."

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