A Calgary single-family homeowner seeing the median increase in property value this year would see their property taxes increase by roughly $10 per month, according to a city tax assessment scenario report.
The item was presented at Calgary’s Executive committee Tuesday, and it outlined a median increase in single-family detached property value of around 14 per cent. That would mean any home that saw this increase as of the July 1, 2022 assessment date would see a roughly five per cent increase on their property tax bills.
Anything above or below the median increase in value would result in a correlative change in the property tax bill.
Condo owners, based on the below scenario, could see a property tax decrease.
In July, Calgary city council capped the increase in property tax revenue needed for this year’s budget at 3.65 per cent. Tack on the 1.35 per cent to cover costs associated with development and redevelopment and you get to five per cent.
At that time, Mayor Jyoti Gondek said if the city didn’t account for inflation and population growth, the tax increase would be flat.
The substantial year over year increase in property values means that the city would over collect on Calgarians by $104 million if the 2022 municipal tax rate was kept. City admin said that would be decreased by roughly eight per cent to not “overcharge” citizens.
“The value of people’s homes and their commercial properties has increased in the last year,” the mayor said Tuesday.
“As a result of that the mill rate (municipal tax rate) that we have in place, the property tax rate is too high compared to what we need for the budget.”
Clarity is key: Coun. Sonya Sharp
At the best of times, how municipal property taxes are derived can be complex. Especially when you’re talking property assessments, tax splits, revenue neutral and mill rates… errr, municipal tax rates and the like.
That’s why Ward 1 Coun. Sonya Sharp wants city administration to be clear in how they explain this to Calgarians.
She asked for elaboration on what all the tax rate scenario really means – particularly around the reduced municipal tax rate and the increase in municipal property taxes.
City assessor Eddie Lee said that it was important to show the reduced rate.
“I think we have to be also cognizant of what taxpayers will ultimately be seeing on their property tax bill,” he said.
“So as illustrated in one of my slides, even though… the residential tax rate is projected to be decreasing by about eight per cent, residential property owners and single residential median property are projected to see a five per cent increase in their tax bill.”
Sharp said that there will be tough decisions ahead for council as they enter budget deliberations in November. The inflation and population increase doesn’t take into account potential addition for more climate measures, further transit upgrades, fire protection and most recently the Tomorrow’s Chinatown project.
“I think it’s also the responsibility of the council to continue to also engage with citizens and businesses to find out exactly where we should be going with this in November,” she said.
The budget package will first be presented to council in early November, with a week set aside later in the month for full deliberation.