Does Sam have a case of advanced Duffyism?

"Very well then. Are you sure your permanent residence is not a cabin on Prince Edward Island?"

Winnipeg mayor Sam Katz received tax credits after listing Arizona mansion as primary residence

By Katrina Clarke
Tuesday, July 22, 2014

A spokesman for the Maricopa Assessor's Office said Winnipeg mayor Sam Katz's Arizona property was reclassified after a state law dealing with rentals properties and tax credits changed in 2013. (Boris Minkevich/Winnipeg Free Press)

It’s hard to fault the wealthy mayor of Winnipeg for wanting to escape Canada’s bitterly cold winters and head south for rest and relaxation. But Sam Katz’s $1-million Scottsdale, Az., mansion is bringing him more grief than peace.

This week it emerged Mr. Katz’s Arizona home is listed as his primary residence, entitling him to over US$1,000 in tax credits, while his Winnipeg home is also listed as a primary residence.

According to Arizona’s Maricopa County Assessor’s Office, homeowners can declare only one property as the primary residence. The owners must live in the home for nine months of the year, though there are exceptions.

Mr. Katz’s spokeswoman said the title company responsible for managing transfer of ownership made the error.

“[Mr. Katz] was not aware of the error in status,” Carmen Barnett wrote in an email to the National Post, adding that he “appropriately declared Canadian status with the titles office.”

‘He has already spoken with the assessor’s office and corrected the information provided to them by the title company’

Ms. Barnett said Mr. Katz’s primary address of residency is in Winnipeg. She said he is not planning to move to the United States, and he is trying to resolve the mistake.

“He has already spoken with the assessor’s office and corrected the information provided to them by the title company,” she said.

This isn’t the first time the 14,500-square-foot Arizona property has caused the mayor grief. He purchased the home from the sister-in-law of Sandy Shindleman, CEO of real-estate firm Shindico, in 2012. Shindico has made successful bids on several development contracts with the City of Winnipeg and Mr. Shindleman owns shares in the Winnipeg Goldeyes baseball team, owned by Mr. Katz.

The purchase raised eyebrows but Mr. Katz said his relationship with Mr. Shindleman did not constitute a conflict of interest.

Related

Winnipeg mayor did not break conflict laws with taxpayer-funded party at restaurant he owned: judge

Winnipeg mayor dogged by questions surrounding contentious Arizona deals

Mr. Katz, 62, a well-known businessman and a former entertainment promoter — he brought the Rolling Stones and Paul McCartney to Winnipeg — has served as mayor since 2004, easily winning re-election twice. In June, he announced he would not be seeking re-election this fall.

According to a statement of assets and interests, Mr. Katz currently lives in Winnipeg’s Tuxedo area, which Tourism Winnipeg describes as an upscale “oh la la” area with “sprawling mansions” and “lush greenery.”

Ms. Barnett said the mayor was not available for comment Tuesday. He was spending time with his family “at the lake.”

According to property information from the Maricopa County Assessor’s Office, Mr. Katz’s Arizona home was listed as a primary residence since 2013.

Robert Pizorno, spokesman for the Maricopa County Assessor’s Office, said Mr. Katz’s property was reclassified after a state law dealing with rentals properties and tax credits changed in 2013. Mr. Katz’s home was classified as owner occupied/primary residence because of information in the deed, he said.

“We don’t believe there was an error by any party, however, the owner has the legal obligation to correct the error once they receive notice,” he said.

‘In the two Taxation notices, the property was clearly shown as receiving a tax credit of $600 for each of the years in question’

The office sent four notices to Mr. Katz, including two indicating he was receiving US$600 primary residence tax credits, he said.

“In the two Notices of Valuation, the property was clearly identified as a Primary Residence. In the two Taxation notices, the property was clearly shown as receiving a tax credit of $600 for each of the years in question, for being a primary residence,” said Mr. Pizorno. “Each of these notices gave the owner the opportunity to correct the classification of the property.”

He said his office has reached out to Mr. Katz’s office to “expedite correcting this problem.”

Arnold Porter, an Arizona-based realtor and co-owner of Arizona for Canadians realty service, said he’s never heard of a title company mistakenly declaring a home a primary residency.

“It shouldn’t be something that the title company decides on their own,” Mr. Porter said.

Home ownership controversies have plagued other wealthy mayors in the past.“The buyer has to declare how they want to hold title. So the type of property that is, what their residency is [and] is this an investment property or personal use property.”

In 2010 The New York Times ran an investigative piece on then-New York mayor Michael Bloomberg and the time he spent at his luxurious Bermuda home while mayor. While New York mayors are known to spend seven days a week on the job, Mr. Bloomberg, a billionaire who owns at least 10 homes, travelled to the island at least twice a month, according to the article.