BANFF – Banff’s commercial taxpayers will pick up three quarters of the $27.4 million tax levy in a bid to ease the financial burden on residents.
With the overall tax levy up 7.37 per cent from last year, council voted 4-3 to deviate from its financial plan that recommended a split to share the overall tax increase equally between commercial and residential taxpayers.
The commercial to residential tax split was set at 4.41 to one, meaning the commercial sector will see an overall tax increase of 9.18 per cent and residents will see an increase of 3.48 per cent.
Councillor Chip Olver successfully put forward a motion Monday (May 14) to have the commercial sector pay 76 per cent of taxes, noting times are good for businesses in Banff.
“I would like to see the commercial ratepayer picking up a bigger portion of taxes. When times were bad we helped them out and now times are good,” she said.
“During the economic downtown we adjusted the tax split in order to soften the blow to the commercial sector and the residents stepped up. It’s time to change that.”
During budget preparation, it was estimated that the overall tax increase would be 5.34 per cent.
However, with the actual municipal levy higher than expected provincial education levy, Bow Valley Regional Housing levy, and overall assessment growth factored in, the overall tax levy increase is 7.37 per cent.
For 2018, an average residential dwelling unit assessed at $487,000 would see an annual increase in overall taxes of $88, whereas an average commercial property assessed at $5.72 million and would see an increase of $7,900.
Mayor Karen Sorensen voiced strong opposition and frustration with Olver’s motion, noting Banff residents have low taxes compared to many other municipalities in Alberta.
“They are relatively low when we compare ourselves to 122 other municipalities in Alberta and we’re the 26th lowest. Commercially, we are closer to average where our commercial sector fell 71st out of 122,” she said.
“It may not be a popular thing to say, but the truth is the residential taxes in Banff are low. For the value I see from my municipality for the $3,300 I currently spend annually on municipal taxes, I am getting incredible value for that money.”
Sorensen said the commercial sector typically picks up 70 to 80 per cent of municipal taxes without complaint.
“I don’t believe adding a burden to them because some council or public feel that our residential taxes are too high so let’s just throw it at the commercial sector is the right thing to do,” she said. “I think the way we’ve been doing it is the right way.”
But Councillor Peter Poole, a prominent businessman and landlord in Banff, agreed with Olver, noting the tax increase for residents would otherwise have been too steep.
“I think those of us in the business community have to take it on the chin,” he said.
“It’s tough, but I think what Coun. Olver suggests is something that businesses will grudgingly accept. Businesses are doing well.”
The province’s school tax requisition increased by 8.21 per cent, or $588,368, to $7.75 million. The education levy makes up 28 per cent of the overall tax levy taxpayers see on their tax bill.
The Town of Banff has seen an average residential taxable assessment increase of 16 per cent from $1.4 billion to $1.63 billion. Non-residential assessments jumped by an average of 11.1 per cent from $1.05 billion to $1.17 billion.
“This is the first time in six years that the growth in the residential assessment outpaced growth in non-residential assessment,” said Chris Hughes, senior accountant for the Town of Banff.
Coun. Grant Canning voiced opposition to a nine per cent increase for commercial taxpayers.
“That’s a steep increase and a good chunk of this is related to the education levy, which is completely out of our hands,” he said.
Coun. Corrie DiManno wanted to keep the tax levy split equally between the two sectors.
“When I do the math, it’s about $100 difference for the average assessed residential property,” she said. “I think they are getting more than $100 worth in new services, through the 2018 budget process.”
