Calgary Property Tax Increase: Understanding the Impact on Homeowners

A Significant Increase in Property Taxes for Calgary Homeowners

Calgarians are facing a larger-than-expected increase in their property tax bills this year, primarily due to a higher provincial requisition for property taxes. The Calgary city council finalized the property tax increase in November, which includes both municipal and provincial portions. The overall increase for residential properties now stands at 8.9%, resulting in a notable rise in monthly and annual payments for homeowners. For the typical single-family home, assessed at $697,000, the increase translates to an additional $29.25 per month, or approximately $350 annually. Condo owners are also impacted, with a 15.96% increase, adding $25.50 per month, or $306 more per year, for a typical condo assessed at $359,000.

The city initially estimated a smaller increase of $11 per month for the average homeowner during budget deliberations in November. However, the final increase is higher due to a 15% rise in the province’s property tax requisition, which now exceeds $1 billion in Calgary alone. This makes Calgary’s per-capita provincial requisition the highest among Alberta municipalities classified as cities, according to city officials.

The Provincial Requisition: A Source of Frustration

The significant increase in the provincial property tax requisition has caused frustration among city councillors, who expressed their concerns during the debate. Ward 14 Coun. Peter Demong described the situation as the most egregious he has encountered in his 14 years of service, calling it "absolutely laughable." The provincial requisition has put additional pressure on the city, which is trying to manage its own budget constraints while fulfilling its obligations to the province.

In response to the increased burden, the city council unanimously approved an amendment to invoice the Government of Alberta for the administrative costs of collecting the provincial share of property taxes. Mayor Jyoti Gondek emphasized that this move is not a political stunt but a necessary step to ensure the city is fairly compensated for managing taxpayer money on behalf of the province. City officials estimate these administrative costs to be around $10 million, though some councillors expressed skepticism about whether the province will reimburse the city.

Reactions from the Province

The provincial government defended its decision to increase the property tax requisition, pointing to the need to fund education and infrastructure projects. A spokesperson for the finance minister criticized the city council for attempting to shift blame for overspending onto the province. The spokesperson highlighted the recent announcement of 18 new schools to be built in the Calgary area, funded in part by the increased property taxes. However, city councillors argued that the additional revenue still falls short of covering the cost of these new schools, raising concerns about the long-term sustainability of funding for education.

Public Perception and the Blame Game

Despite the political back-and-forth, some councillors questioned whether Calgarians would even notice or care about who is responsible for the tax increase. Ward 10 Coun. Andre Chabot noted that most residents are primarily concerned with the total amount they have to pay, rather than the breakdown of where the money goes. This sentiment reflects a broader challenge for local governments: communicating the complexities of tax allocation to a public often preoccupied with their own financial burdens.

Moving Forward: Challenges and Solutions

The property tax hike was approved by the city council, though not without opposition. Councillors Dan McLean, Jennifer Wyness, Sean Chu, Terry Wong, Sonya Sharp, and Andre Chabot voted against the increase, signaling ongoing concerns about the city’s budgeting process and the tỉnh’s role in exacerbating the financial strain on Calgary homeowners. As the city moves forward, there is a growing recognition of the need for smarter budgeting and greater transparency in how taxpayer money is managed. The decision to invoice the province for administrative costs is a symbolic step, but it underscores the city’s frustration with the lack of control over its own financial obligations.

In conclusion, the property tax increase in Calgary reflects a complex interplay of municipal and provincial responsibilities, with homeowners bearing the brunt of the financial impact. As the debate over funding priorities continues, residents will be paying close attention to how their tax dollars are being used—and whether the promises of improved services and infrastructure are fulfilled.