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Canmore approves 4.1 property tax increase

CANMORE – Canmore’s municipal property taxes will increase by 4.1 per cent, slightly lower than initially anticipated in the 2019 budget. In November, council approved a 4.
Canmore-Council-702×478-702×478

CANMORE – Canmore’s municipal property taxes will increase by 4.1 per cent, slightly lower than initially anticipated in the 2019 budget.

In November, council approved a 4.9 per cent increase to cover the municipal budget and the Town’s perpetual affordable housing program, however an extra $204,000 in property taxes from new homes has offset the increase.

While the municipal portion of the tax increase is lower than expected, property owners will still need to pay provincial education taxes and the seniors’ housing requisition.

For example, a residential property will pay a total of $497 per $100,000 of assessed value, with $292 going to the municipality, $243 going to education taxes and $13 going to seniors’ housing.

Non-residential properties will pay a total of $1,110 per $100,000 of assessed value, including $791 going to the municipality, $243 going to education taxes and $13 going to seniors’ housing.

Mayor John Borrowman described the tax rate as “reasonable” adding it would increase his tax bill, including the education and seniors’ requisition, by about $18 a month.

In 2019, Canmore will need to collect approximately $23.7 million through municipal taxes and $725,000 for its perpetually affordable housing program.

Property owners will also be on the hook to cover $931,000 for seniors’ housing in the Bow Valley and $18.5 million in provincial education taxes, although the total education requisition won’t be known until after the provincial budget is finalized in the fall because of the recent provincial election.

“The proposed estimate of $18.5 million is based on the historic Alberta Education property taxes and Canmore’s share of the total based on the assessment data,” said Chelsey Richardson, manager of finance during a special council meeting on May 21.

She said administration looked at an alternative calculation based on last year’s mill rates combined with current assessment data, however that approach would have resulted in an estimated requisition of $19.9 million and required tax payers to fork out more money.

In the event the Town underestimated the education requisite, she said the Town can use municipal funds or its reserves to cover the difference and then make that up in next year’s education requisition.

Chief Administrative Officer Lisa de Soto described the Town’s approach as “reasonable” given the amount of uncertainly around the provincial budget.

“There really is no way of guessing what the province will collect. It isn’t tied to the education department’s budget,” said de Soto. “The education requisition goes directly to government revenues in the province, so it’s not like we can take a look at past department of education budgets and try to predict what this year’s will be.”

Coun. Joanna McCallum agreed with administration.

“I think the proposed education amount is a responsible approach based on the lack of certainty that’s been provided by us by the provincial government and I think overall that it’s a fair assessment,” said McCallum.

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