Winnipeg billboard tax hike to be studied further

Officials with billboard companies in Winnipeg say they're relieved after members of council's executive policy committee sent a proposed tax increase back to city bureaucrats for further study.

The sign industry was outraged after council's property and development committee voted on Fridayto approve a new billboard bylawthat would, in some cases, dramatically raise the tax paid on billboards.

Under the proposed bylaw, the tax on an average billboard would go up from $300 a year to more than $1,100.

For digital billboards, the bylawinitially proposed raising the tax from just over $1,000 annually to $32,000 a year. The property and development committee then changed the proposed cost per square foot, so the tax wouldinstead add up to about $23,000.

But councillors on the executive policy committee decided on Wednesday to send the tax increaseproposal back to city officials so they can study it and consult the sign industry.

Joanne Koop of Pattison Outdoor Advertising says Winnipeg is one of only five cities in North America that charges a tax on billboards, and the industry wants to remind councillors of that.

"They keep saying we're taxed too low, but most cities don't have a tax," Koop said after Wednesday's meeting.

"But yes, we are happy to work with the city and come up with a number that's fair."

The industry consultations will take place in the next month, and the results will go back to the property and development committee in January.

The rest of the billboard bylaw will proceed to council as a whole for final approval.

Koop has said the proposed tax increase was too much, and sign companies were willing to open their books to show they could not afford it.

Coun. Jeff Browaty, who initially supported the tax increase, said he now would like to see billboards taxed based on a percentage of revenue they generate.

"This fee would apply to a billboard on Portage Avenue or one on Gateway Road up in my ward, for example," Browaty said.

"In a lot of cases the revenues, the vacancy rates on the billboards are very different, and applying the same rate for absolutely everything didn't make sense."