Assessment and Tax Mail-Out
Tax rates are finalized once the Government of Alberta confirms the education property tax requisition and City Council sets the current year's property tax rates. The annual assessment and tax notices for residential properties and the tax notices for income producing properties are mailed in May. A separate assessment notice for income producing properties is mailed in February.
Property Tax Breakdown
Property tax is made up of a Provincial education portion, or school "levy", a Green Acres Foundation portion, a municipal portion, also called a municipal "levy", and local improvement charges.
- The Provincial Government determines the amount of education tax each municipality in Alberta will pay. Your City is required to collect this tax from property owners on behalf of the Province.
- The Green Acres Foundation determines the amount of tax necessary for the operation of their senior facilities and supports. Your City is required to collect this tax from property owners on behalf of the Green Acres Foundation.
- Municipal property taxes are used to pay for civic services like police and fire protection, waste management, parks and recreation, roads, sewers, and other infrastructure.
Setting Municipal Taxes
In its budget, City Council approves the amount of money required to support city services and programs. From this amount sources of revenue other than property taxes, such as provincial grants, license fees, and user fees, are subtracted. The balance is the amount to be raised from property taxes. Then the assessed property values, as compared to other homes at the same date each year (July 1), are used to determine each property owner's share of the total property tax revenue required.
Overall market value changes of properties do not affect the total revenue your City collects from property tax. Your City only collects enough taxes to realize the revenue required in the budget.
Your City does not get
less tax revenue when total property values decrease. Nor does your City
get more property tax revenue when the overall property values
The Tax Rate
In order to calculate taxes, a tax rate is established. The formula used to determine the tax rate is as follows:
Property taxes are affected by four factors:
- A change in the Provincial Education tax required by Alberta Learning and distributed to the Public and Separate School Boards
- A change in the tax requirements of the Green Acres Foundation necessary for the operation of their senior facilities and supports.
- A change in the City's overall budget to meet the demands for City services.
- A change in your property's assessed market value if it is higher or lower than the average change in property values City wide.
- When a new building or an addition to an existing building is completed in the calendar year, a supplementary tax bill will be issued by the end of the year
- The supplementary tax bill will reflect the number of months the building was completed or occupied during the year.
Local improvement charges
- You will see this charge when property owners approve new or replacement construction projects that intend to upgrade or improve certain conditions within residential, commercial and industrial areas of the municipality.
- Property owners have the option of paying the associated costs (construction costs and interest) over a specified number of years for improvements constructed in the area of their property or in one lump sum.
- Examples are alley paving, concrete curbs and gutters, sidewalk replacement, extending sanitary, storm or water systems, etc.
For more information, see our Local Improvement Brochure.
Special Road Maintenance Tax
- The object of this levy is to fund costs associated with maintaining the streets and sidewalks fronting businesses and houses where the paving is 10 years or older.
Business Revitalization Zone
Your City collects taxes for the Lethbridge Downtown Revitalization Zone to provide improvements in the downtown area. To reach the BRZ office, please phone 403-327-9002.
Manufactured Home Tax
- Designated manufactured homes are assessed and taxed in the same manner as other houses, structures, and improvements.
- Property tax on designated manufactured homes is based on the assessed value of the buildings and improvements only.
- The land is assessed separately and notices are mailed to the owner of the designated Manufactured Home Community.
- Payment of the annual property taxes is the responsibility of the owner on record at the time of billing as reflected on the tax notice.
Exempt to Taxable Change
- If an exempt property becomes liable for taxation during the tax year, such as land purchased from the City, an amended Assessment and Taxation Notice will be issued by the end of the year.
- The amended Assessment and Taxation Notice will reflect the number of days that the land was owned by you.
For more information:
City Hall, First Floor, 910 4th Ave S
P: 403 320 3950
F: 403 320 4956