BANFF – Banff’s overall property taxes are set to go up by 6.14 per cent.
During budget, it was estimated the overall tax increase would be 4.93 per cent, but it’s now 6.14 per cent factoring in the municipal levy, estimated education tax, Bow Valley Regional Housing levy and overall property assessment growth.
Officials say an average residential dwelling assessed at $399,200 in 2019 would see an annual increase in overall taxes of $119, while average commercial property assessed at $6.05 million would seen an increase of $5,700.
Chris Hughes, the Town’s finance manager, said it’s important to note that these changes in tax bills are average and do not reflect individual property tax changes.
“A property that has seen a higher than average assessment increase will see a greater than average increase in their tax bill and a property that has seen a lower than average assessment increase will see a lower than average tax increase,” he said.
Banff’s overall tax levy is $8.95 million for residential and $20.28 million for non-residential.
The municipality’s financial plan identifies a target tax split of between 3:1 and 6:1 that shares the overall tax increase equally between commercial and residential sectors. In order to accomplish this, the tax rate split this year would be set at 4.815:1.
The plan can, and has been deviated from in the past under various circumstances. Councillors Ted Christensen and Peter Poole supported a split of 5:1,
but did not get the backing of the
rest of council.
“I would like to have a tax split that favours residents more so than we are doing here,” said Coun. Christensen, noting the increases hurt people on fixed incomes such as seniors.
In January, council approved its 2019 operating budget with an estimated municipal tax increase of 6.47 per cent, including tax revenue collected on growth from new assessments.
The tax levy for Bow Valley Regional Housing will increase 6.19 per cent from $354,810 in 2018 to $378,533 in 2019.
The exact 2019 school tax requisition won’t be known until after the provincial budget is finalized, which the new United Conservative provincial government has put off until fall.
During the Town’s budget preparation, it was estimated there would be an inflationary increase of 1.9 per cent to the education tax requisition, but due to shifts in equalized assessments, Banff expects an increase of 6.23 per cent or $485,711 to its requisition.
Based on trends in the provincial equalized assessment data, equalized assessment for the Town of Banff has increased by nine per cent, while the average equalized assessment across the province has only increased by two per cent.
The total overall taxable assessment for the Town of Banff has increased by 10.3 per cent from $2.80 billion to $3.09 billion – an increase of 13.5 per cent to $1.85 billion in residential and an increase of 5.8 per cent to $1.24 billion for commercial.
Mayor Karen Sorensen said she wanted residents and businesses to know that 28 per cent of their tax bills are going to the province for the education tax requisition, not towards municipal services.
“I support public education, but I think it’s important to know that a significant amount of the money does not actually go to the municipality,” she said.
First and second reading on the tax rate bylaw passed Monday
(May 13) and final reading is expected
Thursday (May 16).
