Winnipeg Limo company disputes $144K business tax bill

The City of Winnipeg is ordering a limo company to stop operating unless it settles six years of back taxes but the owner says he is appealing the bill due to a miscalculation on the amount by the city.

According to city documents, as of September 1, 2024, London Limos owes $144,824 in business taxes dating back to 2018.

The order says the company needs to pay the outstanding amount or enter into an acceptable installment plan. 

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According to owner Hardev Sandhu, his business will continue to operate throughout the appeal process which begins with a finance committee hearing on September 16, 2024.

The order says the limo company should cease operations until the money is paid.

“On June 27, 2024, the business operating at 1595 Erin Street was issued an order to cease all business operations due to non-payment of business taxes for the years 2018-2024 inclusive,” the order states.

Sandhu is appealing the order saying the city has miscalculated the amount of taxes and he is being unfairly charged based on the size of the entire building where London Limos is based on Erin Street.

He said over the past six years, other businesses have been operating there, including two auto repair shops and a car wash. He says London Limos has a small dispatch office, and only uses portions of the parking lot and car wash.

“All of a sudden, somebody comes and tells me to cease operations because of their wrongdoing,” said Sandhu, “They know occupancies are issued to multiple businesses and they still close their eyes.”

The city’s assessment documents online show there are four businesses operating out of the Erin Street address.

Sandhu said he stopped paying business taxes when his bill jumped from $300 a month to more than $1300 in 2018 after documents showed an increase in the area assessed from  3,570 square feet to 10,775 square feet.

He said he tried to contact the city to appeal the assessment amount but that was complicated by city closures during the COVID-19 pandemic.

Sandhu says the tax bill poses a significant threat to his business and he is worried about his 25 employees.

“We’re not able to pay this bill, which is not our bill,” said Sandhu.

In a statement, the city said this is the first appeal of an order issued under section 365 of the city's charter act.

A spokesperson added there are approximately 440 businesses in arrears that owe approximately $1.4 million in back taxes. 

On Sept. 16, the finance committee approved the appeal in part, giving them 60 days to work with the city, sort out the issues, and come up with a payment plan.