Find $53M for business tax cuts, Winnipeg mayor tells commission

Winnipeg Mayor Sam Katz hasasked a new city commissionto find about $53 million to help pay for upcoming cuts to the city's business tax.

In introducing the Economic Opportunity Commission on Thursday, Katz said it will either have to find savings or come up with new ways to raisemoney to cover cutsin the 2006 city budget.

The group must find the money withoutreducing city services or raising property taxes.

Katz, who trimmed the business tax by two percentage points to 7.75 per cent for downtown businesses only in the 2005 budget, and wants to eliminate the tax altogether in the coming years.

"For years, the city has bitten off its nose to spite the face of business in Winnipeg," Katz said.

Members of the commission include representatives from the Canadian Taxpayers Federation, the Winnipeg Chamber of Commerce, Manitoba Heavy Construction Association, the Women's Enterprise Centre and Destination Winnipeg.

"The municipal business tax is something we hear about too often, and it's a negative signal," Stuart Duncan from Destination Winnipeg said Thursday. "Many local business can't figure out what services they're receiving for this punitive tax."

Katz has said he wants to extend the business taxcut across the city in the2007 budget.

The Economic Opportunity Commission will report to city council in June. Katz said eliminating the business tax will not be likely until 2008.