Calgarians will be paying more than originally expected on their property tax bills this year, due in part to a larger provincial share bolstered by skyrocketing home prices.
Calgary city council finalized the property tax increase Tuesday, which includes how much the city has to pay to the province as part of its education property tax requisition.
Although city council approved its budget and property tax increase November, city officials must wait until the province tables its budget in the spring to determine the provincial portion of the tax bill.
“Once their budget came out, it was clear they were taking more money than had been anticipated,” Mayor Jyoti Gondek told reporters. “They weren’t reducing their rate so Calgarians will be paying more for their provincial portion than had been anticipated when we set our budget.”
The overall property tax increase for residential properties is now 8.6 per cent, which includes both the municipal and provincial portions.
For the typical single family homeowner with a median assessment of $610,000, the changes result in an increase of $25.77 per month, or nearly $310 yearly.
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The changes will also mean an extra $19.80 per month, or $237.60 more per year, for the typical residential condo owner with an assessment of $295,000.
During November’s budget deliberations, the city estimated the property tax increase would result in a $16 per month increase for the typical single-family home.
The finalized figures have led to some finger pointing between city and municipal officials.
“The provincial government, who has been critical of how we set our tax rate, had the opportunity to do something different with theirs and they did not,” Gondek said. “That’s the reality for Calgarians now.”
In a statement to Global News, Municipal Affairs Minister Ric McIver said the City of Calgary’s increase in property taxes “has nothing to do with the provincial government.”
McIver noted that the education property tax rate set by the province was frozen at 2023 levels in this year’s budget.
However, the provincial budget document shows revenue from the education tax will be $2.7 billion in 2024, $229 million higher due to higher assessment values.
The province is requisitioning $881.7 million from the City of Calgary, which is up $95.5 million over last year despite the frozen rate.
“We’re being penalized for being successful,” Ward 10 Coun. Andre Chabot said. “Because our assessed values have gone up disproportionately more than other municipalities, we actually get taxed more than most municipalities.”
Not all councillors were quick to blame the province’s increased requisition for higher-than-anticipated tax bills.
Ward 1 Coun. Sonya Sharp said city council should’ve done more during budget deliberations to lower the 7.8 per cent property tax increase it approved to cover a jump in spending.
“I think the biggest disappointment for me isn’t even the numbers themselves, it’s council’s will to entertain any attempts to bring that number down,” Sharp said in her debate.
City administration noted higher growth lowered the city’s portion of the property tax increase to 7.2 per cent.
Council voted 9-5 to approve the 2024 tax rate bylaw with Couns Sharp, McLean, Chu, Wong and Chabot in opposition.
Ward 14 Coun. Peter Demong was absent from the vote.
The City of Calgary will begin mailing out tax bills the week of May 24.
© 2024 Global News, a division of Corus Entertainment Inc.