Calgarians are facing a higher property tax increase this year, mainly due to the province requesting more in property taxes from Calgary homeowners. The final property tax increase was finalized by the Calgary city council, including the amount the city has to pay to the province as part of its education property tax requisition. The overall property tax increase for residential properties is now 8.9 percent, affecting both municipal and provincial portions. For a typical single-family homeowner with a median assessment of $697,000, this means an increase of $29.25 per month, or nearly $350 yearly. Condo owners will see an increase of 15.96 percent, resulting in an extra $25.50 per month or an additional $306 annually for a typical residential condo assessed at $359,000.
The property tax increase is larger than originally anticipated, with the city estimating a $11-per-month increase for the typical residential homeowner during November’s budget deliberations. This increase is due to a 15 percent rise in the province’s property tax requisition, surpassing $1 billion in Calgary this year. It is the highest amount among Alberta municipalities classified as a city on a per-capita basis according to city officials. Some councillors expressed frustration over the provincial requisition during a debate, with Ward 14 Coun. Peter Demong calling it the most egregious situation he had encountered in his 14 years as a councillor.
In response to the provincial requisition, city council unanimously supported sending an invoice to the Government of Alberta to recoup the administrative costs of collecting the provincial share of property taxes. Mayor Jyoti Gondek emphasized the need to manage taxpayer money effectively and be compensated for providing services to another order of government. City officials estimated these costs to be around $10 million, but there is skepticism among some councillors about whether the province will reimburse the city. The move was criticized by some councillors, with Ward 1 Coun. Sonya Sharp calling it a benign gesture and advocating for focusing on the municipal portion of property taxes.
A statement from the finance minister’s spokesperson accused council of trying to save their re-election campaigns by blaming overspending on the province, pointing to the construction of 18 new schools in the Calgary area if the provincial budget is approved. The spokesperson highlighted that education property tax is intended to fund one-third of education costs, which has not been happening for several years, and the additional property tax requisitioned from Calgary will not cover the costs of the new schools. Despite the blame game between the city council and the province, some councillors questioned if Calgarians even care about who is responsible for the increase in their property tax bills.
Council approved the property tax hike, with some councillors voting in opposition. Property tax bills are expected to be mailed out the week of May 12th. The ongoing debate between the city council and the provincial government highlights the challenges faced by Calgarians in navigating increasing property taxes and understanding the implications of these changes. As residents brace for higher tax bills, the political and financial dynamics at play underscore the need for effective management of taxpayer money and cooperation between various levels of government to address the impact on homeowners.
