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Ward 4 News: 2016 Property Tax Bill

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2016 Property Tax Bill

Taxes

The 2016 property tax bills have been mailed out to all property owners. The overall increase in the property tax rate for residential property owners is 6.1 per cent.

This year The City may receive a higher volume of inquiries from property owners as a result of the overall property tax increase. This briefing note provides information on the 2016 property tax bills to assist you in answering questions.

For Property Owners:

  • Property taxes are due Thursday, June 30.
  • A late payment penalty of 7% will be applied to any unpaid portion of property taxes on July 1 and October 1. Further penalties of one per cent will be added on the first of each month to any portion remaining unpaid after December 31.
  • The property tax deadline does not apply to property owners who pay monthly through The City’s Tax Instalment Payment Plan (TIPP). Property owners can join TIPP at any time by visiting the web site at calgary.ca/TIPP to request an agreement or by calling 311.

Background:

  • The City of Calgary collects property taxes from all property owners within the municipality to help fund municipal services and to pay the provincial property tax requisition.
  • This year the provincial property tax requisition on The City is $784.8 million, an increase of $69.6 million. The increase in the Alberta Government’s provincial property tax requisition results in an increase of approximately 10.2% for residential property owners and 4.6% non-residential property owners in Calgary.
  • In light of the downturn in the economy and to help local property owners and corporations facing revenue shortfalls, City Council reduced the 2016 municipal property tax rate by 1.2 per cent to 3.5 per cent for both residential and non-residential property owners. This will assist property owners without impacting the delivery of City services or service levels.
  • When the 10.2% increase passed down from the Alberta Government and the 3.5% municipal property tax increase are factored together, the result is a combined property tax increase of 6.1% for the typical residential property owner.
  • Property tax is an essential source of The City’s overall revenue necessary to deliver key local municipal services. To learn about how The City invests property tax dollars visit calgary.ca/ourfinances .

City vs. Provincial Roles in Property Taxes:

City of Calgary

The City of Calgary collects property taxes from all residential and non-residential property owners in our jurisdiction. The money is allocated as follows:

  • City of Calgary for municipal services – $1,640.8 million (both residential and non-residential property)
  • Alberta Government property tax requisition – $784.8 million (both residential and non-residential property).

Help is available to assist eligible low-income homeowners who meet income guidelines and eligibility criteria, regardless of age. For more information or to download an application form visit calgary.ca/fairentry

Government of Alberta

The Alberta Government annually requisitions The City of Calgary for funds that it requires to be generated through property taxes.

The Alberta Government offers a Seniors Property Tax Deferral Program that allows eligible senior homeowners to defer all or part of their property taxes through a low-interest home equity loan with the Alberta Government. For more information go to seniors.gov.ab.ca or call the Alberta Supports Contact line at 1-877-644-9992

Questions & Answers

Why does The City collect property tax for the Government of Alberta?

The City of Calgary is required by legislation to collect provincial property tax through the Province’s annual requisition. The property tax rate is set once The City receives the annual requisition from the Alberta Government. The amount of the Province’s requisition is not subject to review or approval by City Council.

What was the increase in the Alberta Government’s property tax requisition for 2016?

This year the provincial property tax requisition on The City is $784.8 million, an increase of $69.6 million from 2015.

How does the provincial property tax requisition impact the total 2016 combined property tax rate for residential and non-residential property owners?

The provincial property tax rate is blended with the municipal property tax rate to produce combined property tax rates for residential and non-residential property owners. Please see the table below:

​Tax Rate Increase ​Residential ​Non-Residential
​Municipal Property Tax Rate ​3.5% ​3.5%
​Provincial Property Tax Rate ​10.2% ​4.6%
​Combined Property Tax Rate ​6.1% ​3.8%

 

The 10.2 per cent increase passed down from the Alberta Government combined with the 3.5 per cent municipal property tax increase results in a combined property tax increase of 6.1 per cent for the typical residential property owner. This means a median household valued at $480,000 will see a property tax increase of approximately $14.15 per month in 2016, or $170 annually.

Who should I talk to about the increase in the provincial property tax rate?
Call your MLA. If you are unsure who your MLA is, go to www.alberta.ca and search MLA 

Why is the municipal property tax rate increasing by 3.5%?
After the approval of Action Plan 2015-2018, the economic downturn began to affect The City and the community we serve.  Municipal revenues have dropped below the level budgeted in Action Plan. At the same time, the most recent civic census shows that overall service demand and growth pressures in the community have remained high and actually exceed earlier forecasts.

In light of the downturn in the economy and to help local property owners facing hardship and corporations facing revenue shortfalls, City Council reduced the 2016 municipal property tax rate by 1.2 per cent to 3.5 per cent for both residential and non-residential property owners. This will assist property owners without impacting the delivery of City services or service levels.

How are my property taxes calculated?
Property assessments provide the basis for how property tax is calculated. Your tax amount is calculated by multiplying your assessment value by the approved tax rate. Visit www.calgary.ca/Assessment for more information.

Why did my property tax increase when the value of my property assessment stayed the same or decreased from 2015?
Even if your property assessment decreased or stayed the same relative to the entire assessment base, your property tax may increase in order to meet revenue requirements to fund municipal services and provincial education.

Where do my property tax dollars go?
The funds collected through property tax are generally split between the Alberta Government and The City. Approximately 40 per cent of the residential property tax collected is sent to the Alberta Government to meet the provincial property tax requisition and 60 per cent remains in Calgary to help fund municipal services. Visit www.calgary.ca/ourfinances for more details.

How did my tax dollars make a difference in 2015?
The City’s 2015 Annual Report – Pride. Purpose. Progress. – emphasizes our common purpose of Making Life Better Every Day for more than 1.2 million Calgarians that we take pride in serving. It also acknowledges the hardships faced by many Calgarians in 2015 and highlights numerous examples of accomplishments to show continued progress being made in building a great city. Visit calgary.ca/annualreport for more information or to download a copy of the report.

Does The City have a program to help make paying property easier for property owners?
Yes, through The City’s Tax Instalment Payment Plan (TIPP) you are able to make monthly payments towards your property tax instead of paying it in full once a year in June. Visit www.calgary.ca/TIPP, or call 311 for more information or to request an agreement.

What options are available to those experiencing financial hardship?
Under The City’s Property Tax Assistance Program, residential property owners of any age may be eligible for a credit/grant of the increase on their property tax account. Visit www.calgary.ca/FairEntry for more information or call 311.

Seniors may be eligible for provincial support. Visit www.seniors.gov.ab.ca or call 1-877-644-9992 for more information. Property owners in need of immediate assistance are encouraged to call 211 or visit www.ab.211.ca for information on all support options available.

Where can I get more information?
Visit The City of Calgary web site at:

FINANCIAL FAST FACTS

 

​2016 ​2015
​Total City annual operating ​$3.8 billion ​$3.6 billion
​Provincial property tax requisition from Calgary  ​$784.8 million ​$715.2 million
​Portion of provincial total that is collected in Calgary ​33% ​32%
Of The City's total operating budget, net property taxes collected for City services

​$1,616.6 million

42.5%

 

​$1,499.7 million

42%

 

​Combined property tax rate increase on residential properties ​6.1% ​4.2%
​Median assessed residential property value ​$480,000 ​$475,000
Monthly residential property tax on the median assessed household (municipal and provincial combined) ​$247 ​$233
​The monthly residential property tax on the median assessed household (municipal portion only) ​$148 ​$143
​When the property tax rate is increased by 1.0 per cent, the tax-supported operating budget increases by ​$14.8 million ​$14.0 million
​A 1.0 per cent property tax rate increase raises the typical household residential municipal tax bill by ​$17.20 per year ​$16.10 per year

​In 2015, The City’s credit ratings (AA+ Standard and Poor’s and AA High Dominion Bond Rating Service) were among the best of Canadian municipalities. This was a reflection of Calgary’s economic growth and The City’s solid financial position demonstrated by sound fiscal management, forward-looking financial plans, multi-year budget framework and sizeable level of liquid financial resources.

Calgary’s municipal residential property taxes rank among the lowest of Canadian cities surveyed. (Source: 2014 City of Calgary Residential Property Tax and Utility Charges Survey @ calgary.ca/economy)

 


This content represents the personal views and opinions of the Ward Councillor and should not be taken as a statement of policy of The City of Calgary. The inclusion of any external content does not imply endorsement by The City of Calgary.
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