Calgary’s finalized property tax will mean citizens will pay more than initially expected, and some members of council are laying that at the province’s feet.

Calgary’s property tax bylaw was approved during Tuesday’s Regular Meeting of Calgary City council, including a finalized amount for the provincial education property tax. It brings the total property tax increase for Calgarians to roughly 8.6 per cent.

The municipal increase reduced for both homes and businesses, but the provincial take was greater than the city anticipated, leading to the overall jump. That means the typical single-family homeowner in Calgary will see an overall $26 per month increase this year.

Calgary property tax bills show both the municipal portion of property taxes along with the provincial portion. When the City of Calgary approves its budget in November of the year prior, it estimates the provincial education take. Once the province does its budget in February/March, the City sees how much the province takes and adjusts that amount accordingly.

Mayor Jyoti Gondek said the province has chosen to take the full amount of property tax based on the rate they have in place.

“If they had wanted to bring down that amount, they could have they could have changed the rate, but they didn’t,” Mayor Gondek said.  

“So, they are benefiting from higher property values and taking their full share. That means an increase on your provincial share of property taxes that we didn’t necessarily anticipate.”

In an email to LWC, the province confirmed their education property tax mill rate was frozen this year. That mill rate is applied to the assessed value of Calgary homes and businesses to derive the education portion of the property tax.

Province says this is on you, Calgary

A statement from Municipal Affairs Minister Ric McIver said that Calgary’s substantial property tax increase isn’t on them.

“The City of Calgary’s increase to property taxes has nothing to do with the provincial government,” the email read.

“The education property tax is an important revenue source that helps support the growing population of students and the need to build new schools, hire new teachers, and education assistants.”

During debate on the motion Tuesday, Ward 1 Coun. Sonya Sharp said that she didn’t support the new 7.2 per cent municipal increase, even though it was reduced.

“I think the biggest disappointment for me isn’t even the numbers themselves. It’s councils will to entertain any attempts on bringing that number down,” Sharp said.

“I hope we remember when we head into mid-cycle adjustments that any changes we make to our operating budget are on top of what we’re actually approving here today.”

Ward 10 Coun. Andre Chabot said he agreed with Coun. Sharp for the most part, however, did say that he’ll continue to advocate for a more equitable sharing of the tax burden for the provincial portion of taxes. Chabot said he has bent the ear of Premier Danielle Smith on this, suggesting a limit on year-over-year increases to the provincial requisition.

“The challenge from my perspective is that we are a victim of our own success in the fact that our municipality is such a desirable place for people to move to,” Chabot said.

“It’s resulted in a, I guess, a shortage of supply in housing and a higher demand which has pushed our price or values up.”

Property tax bills will be mailed out the week of May 20, 2024.