Red Deer City council set the new property tax rates for 2015 at this week’s council 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 3.75% for residential property, 3.23% for multi-family property and 3.41% for non-residential property.
“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 2015 tax year, the City of Red Deer will collect more than $41.8 million in property taxes on behalf of the Government of Alberta to fund education.
A residential home assessed at $325,000 for 2015 that has experienced the average change in assessed value will pay $8.15 per month more in total property tax. This brings the total annual tax bill from $2,606 to $2,703, an increase of $97 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.”
Councillor Ken Johnston said he is happy with the tax rate that council landed on this year. “This is a very humbling moment when you are passing a law that dictates what taxpayers and ratepayers pay,” he said. “When I think about what we are providing our ratepayers right across our City for 3.73 per cent tax increase, I think we are getting tremendous value.”
Councillor Dianne Wyntjes said when the City is compared to other municipalities provincially, Red Deer has one of the lowest property taxes.
“We don’t have that machinery tax which I think is good for our economic growth,” she said.
Taxes are due on June 30th and 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.
Property tax notices will be mailed on May 27th. This year, the format of the tax notices is changing as the City implements a new system to serve residents better.