Andrew Swan said Tuesday he will not give Manitoba municipalities a share of the PST. Andrew Swan said Tuesday he will not give Manitoba municipalities a share of the PST. (Legislative Assembly of Manitoba)

At least two of the men vying to replace Gary Doer as provincial NDP leader and premier of Manitoba will not give municipalities a share of the Provincial Sales Tax.

Winnipeg Mayor Sam Katz said income from the tax would be more reliable than the grants from the province the city currently gets each year.

The Association of Manitoba Municipalities has also asked the province for a one per cent share of the PST.

"[We] don't need grants, don't need allowances, sorry," Katz said Tuesday.

Katz said one per cent of the PST equals more than $100 million a year for the city.

The NDP leadership is being challenged by Andrew Swan, Greg Selinger and Steve Ashton.

A leadership vote is set for Oct. 18.

Outgoing Premier Gary Doer is stepping down to become Canada's next ambassador to the U.S.

Swan told CBC News if he wins the leadership race, he won't share sales tax-revenue with cities and towns. He said a tax-transfer would leave the province unable to pay its own way.

"I don't think we can just hive off a per cent on the sales tax and still do all the other things that Manitobans expect us to do," Swan said.

"I understand that if we were to hand over [one] per cent of the sales tax it would cost the province about $200 million. That would be $200 million less to spend on health care, education, on social services," Swan said.

Selinger's response was mixed. He said while he's currently not in support of a sales tax share, that could change.

"At the moment, no," Selinger said. "But, the future's the future. We can look at these things together we wish. I'm not going to shut off future options."

Ashton wouldn't directly comment on the issue, but said an announcement on municipal financing is coming from him soon.

"There's a number of options," Ashton said.