Amendments to the Municipal Assessment Act introduced in the legislature by

Intergovernmental Affairs Minister Jean Friesen would renew the ability of the Municipal Board and local boards of revision to set assessments at market value.

"Manitoba ratepayers and municipalities need to have the same protection as is afforded in all other provinces," said Friesen, when she introduced the legislation.

For several years, Manitoba has been the only province in which appeal tribunals do not have full authority to set assessments at what they believe to be the market value. Currently, the Board of Revision and Municipal Board may not increase an assessment of a property which has been appealed by the property owner, even where the evidence may support such an increase.

These restrictions not only erode the tax bases of municipalities and school

divisions, they preclude an equitable distribution of property taxes--one of the fundamental principles underlying our assessment and property tax system, said Friesen.

"If a board finds that the true market value is higher, its hands are tied. As a result, municipalities' tax bases are being eroded by the one-sided

appeal environment and other taxpayers are being forced to pay the taxes that should be paid by those benefiting from assessments which are too low."

"These amendments are part of the government's continuing initiative aimed at addressing the public's concerns about the property tax system," Friesen said. They follow the recent announcement of a $75 increase in the Manitoba Education Property Tax credit, bringing the total increase to $150 over the

last two years. That amounts to a six per cent property tax reduction Province wide.

The amendments would become effective Jan. 1 to provide ample notice of these changes in process.