Town council has given first reading to the 2014 Property Tax Bylaw and while there is a zero per cent tax increase for residents, property owners will still see a three to five per cent jump on residential tax bills due to assessment growth.
“The mill rate stayed exactly the same. We did a zero tax increase. We lowered the school tax rate,” said Heather Whymark, the town's director of corporate affairs. “It is only because residents' properties are worth more that they are paying more taxes.”
While residential tax bills will be up to five per cent higher, non-residential property owners are looking at a hike of one to 3.2 per cent.
The increases will mean the town will see a $298,000 jump in tax revenues for the current fiscal year.
Administration presented the 2014 Property Tax Bylaw to town council on March 24. The bylaw is expected to be finalized on April 14 when council votes on second and third readings.
Despite residents paying more taxes this year, the bylaw is being seen by senior town officials as good news for property owners.
“You want your town to grow and you want your assessments to grow because that means your properties have more value and you can sell it for more. This is what I call a natural growth increase,” said Whymark. “It is not us increasing taxes to compensate for covering infrastructure.
“Even though taxpayers still have to pay it they are getting something in return, that hopefully if they sell their house it is worth more,” she added.
Council was told residential taxes will increase about $56 for a property assessed at $224,000 while non-residential taxes will increase about $111 for a property assessed at $595,000.
As for the school tax requisition set by the province, it has decreased by $100,000. That will lower the school tax bill for property owners by about $13.
“If our assessment and growth goes up they (province) does not ask as much from us because they still get the equalized amount,” said Whymark. “If the growth goes up usually the school (tax) goes down.”
The Seniors Foundation requisition increased marginally from $20,371 to $21,050. However, due to the increase in assessment growth, the rate change is minimal.
If council gives the bylaw second and third reading on April 14, the 2014 assessment and taxation notices will be sent out by the end of April. Residents will have 60 days to file an appeal on or before June 30.
Taxes must be paid without penalty on or before the June 30 deadline. If payment is made after June 30 and before Sept. 1 there is an eight per cent penalty on the outstanding balance. If taxes are not paid before Sept. 1, there is a further four per cent penalty on the outstanding balance. Taxes not paid before Jan. 1, 2015 are subject to a 12 per cent penalty on the outstanding balance.
