INNISFAIL -- There will be little if any increase on residential tax bills despite town council approving another modest hike to the 2019 property tax rate.
The 2019 Property Tax Rate Bylaw was brought forward to town council at its regular meeting on May 13 by Heather Whymark, the town's corporate services director. After detailed discussion, council unanimously passed all three readings for this year's tax rate bylaw.
Whymark recommended to council to approve an increase to the residential property tax rate from one per cent, which was approved last December, to 1.5 per cent.
She said even with the 1.5 per cent tax increase this year seven out of 10 homeowners are going to see a tax bill that is equal to or less than the one they received last year.
"With assessment values being lower their (tax) bills will certainly not increase by anything substantial," said Whymark. "Financially-wise some will still see a decrease. Some may see an increase depending on assessment. Even with 1.5 (per cent) on their bills, financially on a $330,000 house it's going to go up $12 for the year, a dollar a month thing."
Whymark also recommended non-residential rates for commercial and industrial property owners remain at one per cent, as previously approved by council five months ago.
"The assessment had some growth. We left it at one because they (commercial and industrial) did get enough increased assessment to leave it," she said.
Whymark's report to council stated the budgeted tax revenue for 2019 was $7,690,144, while the actual revenue with the previously approved one per cent tax hike was $7,700,116. Her report added this left the town with a balance of $9,972 to allow for assessment changes that could take place.
"There's always a portion that is left over for assessment changes and that was something that wasn't really coming through last night (May 13)," said Whymark of an important reason why the tax rate had to rise moderately to 1.5 per cent, which would give the town an additional $26,825 to allow for assessment changes. "I am not looking for revenue at all. There has to be a fund there for me to give back and all that was there last night (May 13) was $9,000. That could be wiped out in one big assessment depending on who challenged and what that assessment came out to be for a change."
In the meantime, the town has been requested by the new United Conservative Party provincial government to use the 2018 requisition as the amount due for this year's education tax bill. As previously reported by the Innisfail Province, the 2019 requisition is delayed until the new provincial budget is ready this fall due to the April election.
Whymark's report to council stated the school tax requisition required is $2,971,967. The funds collected are $2,989,800, which will generate a surplus amount of $17,833. Her report said these excess funds will go into any school tax increase that may come next year.
"I think we should all be very pleased with it. There's no big hit on anybody," said Mayor Jim Romane of the process that led to the formal approval of this year's Property Tax Rate Bylaw, which included a solution for the delay of the 2019 provincial school tax requisition. "In spite of the province's lack of organization to have the school tax requisition covered before calling an election that is water under the bridge now."
With the 2019 Property Tax Rate Bylaw now passed, assessment and taxation notices will be sent out to property owners by May 17. This will give residents 67 days to file an appeal on or before July 24. Taxes must be paid without penalty on or before the June 30 deadline.
