Inequities in Condo and Apartment Property Tax Rates

Amending Unfair Property Taxes for Condominium and Apartment Owners

Condominiums and apartment tenants or owners face an unfair burden in the payment of property taxes in Manitoba. Condos and apartment units pay property taxes based upon a portion of the fair market value of their property, exactly equal to that portion of fair market value charged to residential or detached homes whether in the suburbs or downtown areas. This is clearly an unfair imposition as the land occupied by condos and apartment blocks, with individual residences stuffed into as little property as possible and resting one on top of the other, must be inferior to that occupied by an equivalent number of detached or semi-detached homes, spread out as widely as possible. For example, 100 families lodged in a condominium or apartment complex will occupy land far less in extent than the same 100 families lodged in an equivalent number of detached residences in the suburbs.

With population density elevated among condominium and apartment dwellers, the property taxes charged should reflect the economical use of land and the moderation of demands upon public services related to land management and maintenance. As it rests with the province to decide and regulate such matters, we will accordingly ease the heavy penalties in property tax imposed upon condominium owners and the tenants or owners of apartment blocks.

Both residential home owners and condominium and apartment owners currently pay a portion upon 45% of the fair market value of the property. Condominium and apartments complexes will instead pay taxes based upon 31.5% of the fair market value of the property, lowering property tax bills by approximately 30%. Present property tax bills for condominium and apartment owners will be frozen at present levels. As the years pass, the rates charged residential homeowners will rise until they reach the 100: 70 ratio with condominiums and apartments. Thereafter, they shall both rise with the ratio maintained. No revenues are ceded with this solution. It is only that the multi-residential units will contribute less proportionally.

New condominium or apartment complexes will be immediately subject to the new rates or 31.5% of fair market value, encouraging the construction of multi-residential units for those in need of them.