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Calgary city council finalizes 3.61% overall property tax increase

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Calgary city council finalizes 3.61% property tax increase
WATCH ABOVE: After a lengthy discussion on Wednesday, Calgary city council has finalized its property tax increase for 2022. As Adam MacVicar reports, how much you will pay depends on a number of factors – Mar 30, 2022

Calgarians will soon get a better of idea of just how much they will pay on their property taxes this year.

On Wednesday, city council voted on an overall property tax increase of 3.61 per cent.

That number is a combined rate of both municipal tax as well as the provincial education tax.

The provincial government increased how much it is requisitioning for the education tax from the City of Calgary by 1.7 per cent — or $12.8 million — this year.

“We have no control over the provincial requisition (and) we have no control over assessed values, so we really have to work with what we’re given,” said Ward 1 councillor Sonya Sharp, who chaired the meeting as deputy mayor because Mayor Jyoti Gondek is in Vancouver for a conference.

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“We do have control over our municipal property tax budget.”

The final number comes after council passed a 3.87 per cent tax increase during budget adjustments in November, but that figure was adjusted to 3.5 per cent after city administration said it found money internally to cover some costs.

The add-ons to that budget included further investment in downtown, affordable housing, arts and culture, public safety, roads and climate action.

Read more: Calgary city council passes 3.87% property tax hike to fund fire, roads, downtown, climate

How much will you pay?

The increase to property taxes means residential homeowners of a median-priced, single-detached home of $485,000 will pay 5.21 per cent more this year.

According to council documents, that equates to $172 per year and $14 per month.

Homeowners who had their property value assessments rise by more than six per cent this year will pay more, and those whose property value increased by less than six per cent will pay less.

The average condo owner will pay less on their taxes by 3.47 per cent. The average owner of a high-rise property will also see a 4.23 per cent decrease in their property tax.

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Read more: ‘A balancing act’: Local hotel industry asks City of Calgary for relief on taxes and fees

Hotels will also pay less in property tax this year, expected to be 13 per cent less across the city. This comes as those in the city’s hotel sector called on the City of Calgary for further tax relief. 

On Wednesday evening, city council voted in favour of bringing in a tax deferral program for local hotels and motels seriously impacted by two years of the COVID-19 pandemic.

Council documents show retail businesses in neighbourhood shopping centres will see an increase of 6.04 per cent, while the typical industrial warehouse will pay 4.18 per cent more. Average, large-format industrial warehouses are expected to see a 10.44 per cent increase on their property taxes.

Calgarians are expected to receive their tax bills in the mail in May, and property taxes are due for anyone not on a monthly plan at the end of June.

Ward 14 councillor Peter Demong said it’s a “complicated” equation and wanted to see clearer messaging on those property tax bills to help ease resident confusion.

“People will start getting confused between the assessment value increase versus the property tax increase, which is why they’ve always done it separately before,” Demong said.

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“I believe we can put it on the same notice, separate it completely and let people know, ‘Your property tax is going up this much because of what city council has done, and it’s going up this much or going down this much because of what happened in your assessment value.'”

–with files from Adam Toy, Global News

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