Tax dispute with feds results in shortfall for city’s taxation department
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Hey there, time traveller!
This article was published 19/11/2014 (3442 days ago), so information in it may no longer be current.
The City of Winnipeg’s taxation department is going $2 million over budget this year because Ottawa isn’t paying its bills.
The finance committee authorized the taxation and assessment department today to over-spend its 2014 budget by $2 million.
The reason cited by the department for going over budget is because the federal government is disputing the property tax bills for two of its buildings: the new Canadian Museum for Human Rights; and, the national microbiology laboratory complex on Arlington Street.
Federal properties are exempt from property taxes but the federal government makes Payments In Lieu of Taxes, based on what the tax bill would be if privately owned.
An administrative report states that for most federal properties in Winnipeg, the city and Ottawa have agreed on the assessed values.
But Ottawa has disputed the assessed values the city has given to the museum and lab complex since 2009, which resulted in Ottawa paying city hall substantially less than what it was billed.
For the two buildings since 2009, Winnipeg billed Ottawa $18.2 million but only received $9.3 million in payments – leaving a shortfall of $8.9 million for that time period.
For 2014, the City billed Ottawa $4.9 million for the two buildings, but so far has received only $2.5 million in payments – a shortfall of $2.5 million.
Finance chairman Coun. Marty Morantz said the city remains committed to ensuring Ottawa pays the full amount.
“All efforts will be made to (get) this amount in full,” Morantz (Charleswood-Tuxedo) said.
Disputes of this type are referred to an impartial agency, the Dispute Advisory Panel. Ottawa isn’t obligated to accept the DAP finding.
The city took Ottawa to DAP on the museum land for 2010 and 2011. DAP essentially ruled in the city’s favour but Ottawa hasn’t said if it will make a payment based on the DAP finding.
For the microbiology lab, the city has filed for DAP hearings for the years 2011, 2012 and 2013. Ottawa hasn’t completed its payments for lab for 2014.
aldo.santin@freepress.mb.ca
