Red Deer City council approved first reading to the 2018 Property Tax Bylaw at Monday’s council meeting.
This means the combined tax increase needed to fund the municipal tax requirement and the requisitioned amounts from Alberta Education and Piper Creek Foundation would result in a total tax increase of 1.5 per cent for residential, multi-family and non-residential properties.
“The City is required under legislation to collect education taxes at the tax rates prescribed by the Province. Education tax makes up 28 per cent of an average home property tax bill this year,” said Joanne Parkin, revenue and assessment services manager.
For the 2018 tax year, the City of Red Deer will collect more than $45.4 million in property taxes on behalf of the Government of Alberta to fund education.
In accordance with the approved 2018 Operating Budget, the proposed 2018 Property Tax Bylaw would collect $132.5 million in municipal taxes to fund programs and services.
The proposed tax increase would mean a typical house assessed at $325,000 would increase by $3.94 per month for municipal tax. The education portion would decrease by $0.38 per month and the Piper Creek Foundation portion would increase by $0.16 per month bringing the total tax increase to $3.72 per month under the proposed bylaw. This would equate to an annual tax bill of $3,018 up from $2,973 in 2017 which is an increase of $45 per year.
“Our municipal taxes are essential to providing the services The City delivers, everything from maintaining our roads and parks, to police and emergency services,” said Parkin. “It’s about providing necessary services for our growing city.”
The Tax Rate Bylaw will come back for consideration of second and third readings at the council meeting on April 30th. Taxes are due June 30th.
-Submitted by the City of Red Deer