Property Taxation FAQ's
WHO DETERMINES THE ASSESSED VALUE OF PROPERTIES IN MANITOBA?
The Province of Manitoba through Assessment Services is responsible for all real and personal property assessments in the province, excluding property in the City of Winnipeg. The City of Winnipeg is responsible for property assessment services in Winnipeg. Property in Manitoba is grouped into 10 property classes on the basis of use, and a portion of the assessment is taxed. Property classes and the portion of assessment that is taxed is established by the Province of Manitoba regulation under The Municipal Assessment Act.
HOW ARE ASSESSMENTS DETERMINED?
In Manitoba, according to The Municipal Assessment Act established by the Province of Manitoba property is assessed at market value. Market value is the most probable selling price of the property had it been sold by a willing seller to a willing buyer. Regular reassessments, done every 2 years, ensure that property assessments keep pace with real estate market conditions, and taxes are distributed fairly to property owners.
Assessment notices are prepared by Provincial Assessment Services in the fall of each year for the following taxation year. The values are based on market values from 2 years prior.
On new construction assessment services may physically inspect the property and if buildings are removed a demolition permit should be obtained from the Portage la Prairie Planning District (at no charge) and the assessment branch will be notified in order to remove this assessment.
WHAT IS A MILL RATE?
When discussing taxation you will likely hear terms like municipal mill rate, school tax mill rate and assessment. A mill rate is the dollar amount used to calculate taxes based on assessed values. The assessment, which is determined by assessment services, is portioned for taxation purposes. Farm properties are taxed on 26% of assessed value, residential properties are taxed on 45% of assessed value and commercial properties on 65% of assessed value. The mill rate is then applied to every $1000.00 of portioned assessed value. Example: If Mill rate was $12.00 based on the example below the taxes would be $12.00 x 92.250 = $1,107.00 for residential; $12.00 x 104.000 = $1,248.00 for Farm and $12.00 x 390.000 = $4,680.00 for commercial. The current municipal mill rate and local and provincial education mill rates can be found on the information sheet included with your tax statement or on the municipal website at www.rmofportage.ca. Municipal and local school division mill rates are applied to residential and farm properties. Municipal, local and provincial education mill rates are applied to commercial properties. If you require more information please contact the municipal office.
DOES ALL THE MONEY COLLECTED BY THE MUNICIPALITY STAY WITHIN THE MUNICIPALITY?
No, the property taxes collected are broken down into municipal and school taxes. The municipal taxes are collected for the municipal operations and the school taxes are collected and forwarded on to the local school divisions and the provincial education support levy. Your tax statement shows the breakdown between municipal and school taxes. Presently, of the total net taxes you pay, the annual percentages between the two is approximately 45% municipal and 55% school.
HOW DOES THE MUNICIPALITY DETERMINE THE TAX REQUIREMENT?
Annually the municipality goes through a budgeting process. All areas of the budget are reviewed to determine the needs for the upcoming year. Increases have to be accounted for, new initiatives, cost of living, etc., as well as reducing expenses to offset the increases if possible. The municipality knows the importance of being fiscally responsible with taxation while still maintaining or increasing services. This is a challenge that is faced annually. The municipality holds a public meeting annually to discuss the budget. The public is encouraged to attend this meeting as it is important to be able to express any concerns you may have or to ask questions. The date of this meeting is advertised in the local paper as well as on our website. www.rmofportage.ca
ARE THERE ANY TAX CREDITS THAT ARE AVAILABLE TO TAXPAYERS?
Yes, if you are the registered owner of property, and as of January 1s t this property is your principal residence you may be eligible for the Manitoba Education/Property Tax Credit Advance. This is a credit of up to $700.00 off of your residential taxes after the minimum payment of $250.00. If you are a senior (65+) you may also be eligible for an additional credit of up to $470.00 off of your school taxes on your principle residence.
The province has provided a program which rebates to the property owner a certain percentage of school tax that is paid on farmland. Rebate forms are mailed out to property owners, if they have previously applied for this credit, or can be printed off of the website or picked up at the municipal office.
- Property taxes must be paid in full
- Municipal office signs the rebate form indicating payment has been received OR copy of the receipt for tax payment is submitted with the rebate form.
- Completed form and receipt is submitted to the nearest MASC Insurance Office.
- If approved, the rebate will be mailed out to property owner