The Alberta government’s provincial school tax requisition has dramatically gone up for the Town of Banff, leading to higher property taxes for residents and businesses.
Town of Banff officials say the provincial education tax requisition has increased by 10.8 per cent, from $6.2 million to $6.7 million, as a result of the NDP’s provincial budget announced last Thursday (April 14).
Banff’s 2016 operating budget called for a tax increase of 4.16 per cent and, although council has not yet approved the tax rate, the education levy increase means the overall tax paid by Banff property owners goes up by another 2.47 per cent.
“With the actual education tax requisition confirmed, the Town’s budget now calls for an overall 6.63 per cent increase in property taxes,” said Chris Hughes, senior accountant for the Town of Banff.
The Alberta government, which sets education taxes, announced an increase in the education tax requisition from municipalities by $153 million over the 2015 amount, for a total of $2.4 billion.
The Town of Banff collects taxes from Banff taxpayers on behalf of the province. Historically, the school requisition accounts for approximately 25 per cent of the overall tax levy collected from Banff property owners.
Hughes said the increase to the 2016 school tax requisition is due to a combination of factors, noting the province calculates the municipal education tax levy as 32 per cent of the year’s education operating budget.
“This year’s budget included an increase of approximately seven per cent overall to this levy,” said Hughes.
“The levy that Banff taxpayers will pay is further increased due to the fact that our overall property assessments grew at a greater rate than the rest of the province.”
The municipality’s approved budget called for a 4.16 per cent increase in property taxes for 2016 to help fund its $36.3 million operating budget based on the costs of services levels provided.
During budget deliberations in November and December, the Town estimated the education property tax would be at the rate of inflation, which was 1.6 per cent.
In other provincial budget news, the Town of Banff will receive approximately $23,500 less in Municipal Sustainability Initiative (MSI) capital funding than anticipated, for a total of $2.061 million.
MSI capital funds are directed to pay for redevelopment of the Fenlands recreation centre.
The Town received about $2,000 more in MSI operating funds than expected, for a total of $95,107 funding, which goes to general revenues.
