Red Deer City Council set the new property tax rates for 2013 at Monday’s meeting.
The combined tax increases required to fund the municipal tax requirement as well as the requisitioned amounts from Alberta Education and the Piper Creek Foundation result in total tax increases of 2.24% for residential property, 2.11% for multi-family property and 6.59% for non-residential property.
The bylaw passed by a vote of six to two.
“The City is required under legislation to collect education taxes, at the tax rates set by the province, to fund education and that is resulting in different total tax increases for each class this year,” said Joanne Parkin, revenue and assessment services manager.
For the 2013 tax year, the City of Red Deer will collect more than $39 million in property taxes on behalf of the province for education funding.
That marks an increase of $1.5 million over last year.
A residential home assessed at $300,000 for 2013 that has experienced the average change in assessed value will pay $4.74 per month more in total property tax. This brings the total annual tax bill from $2,550 to $2,607, an increase of $57 annually.
“Our municipal taxes are used for services ranging from maintaining our roads and parks to providing police and emergency services,” said Parkin. “It’s about collecting enough to provide services for Red Deer residents.”
Taxes are due on June 28.
Payments made after this date will be considered late and subject to penalty. Property tax payments can be made at City Hall, online, with your financial institution, by mail, or through the Tax Installment Plan.
“We don’t currently have a policy that guides the distribution which we need, but in the absence of that I think this provides the balance between the three property tax classes,” said Councillor Tara Veer.
Property tax notices will be mailed on May 22.
More information about the City of Red Deer’s property assessment and taxation is available online at www.reddeer.ca/tax.