Lethbridge City Council on Tuesday unanimously approved both second and third reading of Bylaw 6358.
The bylaw outlines the 2022 municipal tax rate (or mill rate). This rate is determined by taking the City's budget divided by the total value of all properties within the City. An individual tax bill is calculated by multiplying the tax rate with the assessment value of the individual property to ensure all property owners pay their portion of funds required to operate the City of Lethbridge.
Residents will see an increase on their bills in 2022 due to a change in taxes collected by the Government of Alberta for the education tax and the Green Acres Foundation budget, as well as if there has been a change to their property assessment (the value of your home, business or multi-family complex). Lethbridge City Council continues to do what it can to curb tax increases for residents by maintaining a 0 per cent increase for the municipal portion of property tax bills in 2022.
In 2020, the COVID-19 pandemic caused downward shifts in market value. But in 2021, a strong recovery to property values was realized. Like most communities in Alberta, Lethbridge property values increased in 2021. The 2022 Assessment reflects market value as of July 1, 2021.
As a result of the Provincial requisitions, the typical house ($285,800) will see an overall increase of about $23.
In 2022, the residential component of the Provincial education tax levy has increased by 4.84 per cent, which results in increased taxes for most ratepayers to fund education. The Green Acres Society budget also increased by a net amount of about $90,700 or 4.36 per cent. The increase is required to adequately fund affordable housing for senior citizens and is responsive to the needs of seniors, their families and the community. This results in increased taxes to fund Green Acres.
"Property tax revenues fund many City operations including roads, parks, fire and ambulance, transit, community services, police and governance," says Mayor Blaine Hyggen. "We are aware people may see an increase to their overall tax amount this year, but please know that the municipal portion that Council approves has not been affected for 2022."
On December 14, 2020, the previous City Council approved amendments to the operating budget to reduce the municipal tax increase to 0 per cent for 2021 and 2022. Because there was a 0 per cent budget increase and market values went up, the corresponding municipal tax rate dropped in all categories. Council will hold its 2023-2026 Operating Budget deliberations in November.
All 2022 property tax notices will be mailed out at the end of May with a due date of June 30.
Backgrounder:
Many in the community believe that the City of Lethbridge has the highest property taxes in Alberta. This myth comes when people compare our mill rate to other cities. This is not a fair comparison as we know house values are much different from city to city. A $300,000 house in Lethbridge cannot be compared to a $300,000 house in Calgary or Raymond. It is like comparing apples to oranges.
The stability of the economy in Lethbridge is a contributing factor in this component. The majority of the provincial towns and municipalities have seen declines in their assessment base while Lethbridge has stayed relatively constant over the last few years. Education taxes are distributed based on an assessment base's proportional share of the overall tax supported costs of operating the education program. Lethbridge, having a stronger assessment base, results in a proportionally larger share of the costs which increases education tax rates for Lethbridge residents for 2022.
The City of Lethbridge offers more services and has higher service levels than many other cities – which was confirmed by a third party in the City's Operational Reviews. Average property taxes and high service levels equals good value for home owners in Lethbridge.
House prices also stay very consistent in Lethbridge and are lower than most other Alberta municipalities. This means both a mortgage and property taxes will be lower compared to a similar home in other cities.
Paying property taxes is an investment in the community and in Lethbridge, it is one that comes with a very high rate of return. For more information visit www.lethbridge.ca/valueformoney.
For more information on how property taxes are calculated visit: www.lethbridge.ca/taxes.
