Winnipeg’s city administration is currently assessing the public’s interest in the introduction of potential new taxes on various items including alcohol, online purchases, and vehicle registration. This comes as the city faces continuous financial constraints and is in need of either increased provincial funding or alternative revenue sources to sustain its services.

Scott Gillingham, the city’s mayor, openly stated in a recent interview that Winnipeg, just like any other city in Canada, is grappling with financial hurdles. According to him, the city of Winnipeg requires additional revenue to cope with the mounting demands of a growing city and to adequately fund its services.

In order to gauge public opinion, the city, via a survey company, is enquiring if residents would prefer if Winnipeg procured more funds from the province, reduced services, hiked property taxes beyond 3.5%, or implemented new municipal taxes. The final option would necessitate the approval of the Manitoba government.

Several items are being considered for a potential new municipal tax, including liquor, vehicle registration, online orders for delivery, vacant homes, commercial parking, and land transfers with an exemption for first-time homebuyers.

Mayor Gillingham states that they are exploring various revenue options and are keen on understanding public opinion towards these potential changes. He emphasizes that the city needs to increase its revenue, whether through provincial grants, raising their own revenues, or a combination of both.

Minnesota recently implemented a flat 50-cent fee on many online delivery items, with exceptions for transactions under $100 and restaurant meals. In 2023, the former Progressive Conservative government ended the freeze on municipal operating grants, increasing them by an average of 28%. The incumbent NDP government has pledged to annual increases of 2%.

However, civic leaders argue that this increase is still insufficient. The Association of Manitoba Municipalities has requested an automatic funding escalator that would boost grants in proportion to rising costs. Interim president Kathy Valentino stated that municipalities are currently facing significant challenges in balancing their budgets, especially as costs continue to rise.

Any new municipal tax would require provincial approval. Previous requests, such as a proposal for a liquor tax in Thompson in 2007, were denied. The province has not yet indicated whether it is open to considering new municipal taxes.

Despite this, Mayor Gillingham confirmed that talks with the province about increased funding are ongoing, and the province has expressed a willingness to explore a new funding model for municipalities. He expressed optimism about the ongoing dialogue with the province.