CALGARY — Unfortunately, this is not an April Fool's Day joke.
Calgarians are faced with an 8.1% increase in property taxes this year, which includes the municipal and provincial portions, after Calgary city council finalized the rate on Tuesday.
The municipal portion is a 1.2% increase on residential and non-residential properties, while the provincial portion includes an increase of 19.8% for residential properties and an 8.8% increase on non-residential properties.
“Our city council team did the hard work, we lived within our means, we spent responsibly,” Calgary Mayor Jeromy Farkas told reporters on Tuesday. “To see that massive increase in property taxes due to provincial government decisions is extremely jarring.”
Calgarians will be sending more than $1.2 billion in property taxes to the province, which increased the education property tax by $200 million which, according to city officials, is the largest amount sent to the province by any Alberta municipality classified as a city on a per capita basis.
“There was a loud cry for more teachers, more schools, more supports, which comes at a cost,” said Ward 13 Cllr. Dan McLean. “I can’t support that, but I know a lot of my residents wanted those things.”
Now, of every dollar collected by property taxes in Calgary, 42 cents goes to the province
Farkas said it’s important for Calgary taxpayers to know how much tax money stays in Calgary and how much goes to Edmonton and would like to be able to send out two separate tax bills to make the point, however, the city must legally send just one bill to property owners.
He added he has hopes for more provincial funding due to high oil prices which is expected to generate additional revenue for the province this year, noting the provincial government had said the lack of support for municipalities and infrastructure was based on the lack of resource royalties.
Here’s what the increase means to Calgary homeowners.
For the average single-family home, with an assessment of $706,000, the changes result in a 9% tax increase; an additional $32.25 per month.
For condominium owners, it's a 4% increase, which for a home assessed at $347,000 means an extra $7.41 per month.
The average multi-family property has a 16.2% increase and the typical non-residential property will have its rate increase by an extra 2.5%.
“Make no mistake, our city council team did the hard work,” Farkas said. “To see us as a team live within our means, reduce that increase down to 1.2% and to have all of that work erased with a massive increase from the provincial government, it begs some more serious questions.”