Wednesday, May 7, 2014

Why did my taxes go up?

Every year at this time we talk about taxes, the way we calculate our taxes in Alberta can be very confusing it takes a lot of time and effort to fully understand the process.

The taxpayers here over all are in a position this year of having no additional tax dollars taken out of their pockets than last year. Unfortunately that does not mean that nobody received a tax increase this year I will explain.

Tax rates in Alberta are set by the combination of two factors "Marketplace Assessment and Mill rate", each year our Assessor must determine the Assessment value of our whole community. He does that by factoring in the values of properties sold in the market place for the last twelve months. Due to the markets some years single family residential homes may be in demand, other years condos, country residential etc etc. In a nut shell values go up and down, and sometimes in some areas more or less than others.

This year our total municipal assessment base dropped 4% now to bring in the same amount of taxation dollars as last year the mill rate had to increase 4%.

So assuming that your property dropped in value the average 4% with an increased mill rate of 4% you would pay the same taxes as last year.

Some examples (Numbers may not totally equal due to rounding)

2013-$200,000 home x mill rate of 9.130963 that would equal $1826
2014-$192,000 home (4% drop) x mill rate of 9.4954 that would equal $1823
Virtually the same as 2013

Why did my taxes go up? I will use my own assessment as an example.

2013-$307,000 home x mill rate of 9.130963 that would equal $2803
2014-$303,000 home x mill rate of 9.4954 that would equal $2877 my taxes went up $74 why because my property only dropped in value by 1%.

Then I will give you an example of a person who's value went down more than the 4%.

2013-$155,000 home x mill rate of 9.130693 that would equal  $1415
2014-$146,000 home x mill rate of 9.4954 that would equal $1386 their taxes dropped by $29 because their value dropped more than the 4%


I hope I have explained this process, I understand it is complicated but in the simplest terms I can explain. The mill rate increased 4% if your property value decreased the average 4% your taxes stayed the same, if your value decreased less than 4% your taxes went up. If you value decreased by more than 4% your taxes went down.

Note: If you are really interested in the whole process of market place assessment you should read the following http://mgareview.alberta.ca/wp-content/upLoads/media/Market-Value-Assessment-and-Administration-Discussion-Paper.pdf

It is a little technical but it does fully explain the process, if you still have questions or concerns contact the Assessor Glen Snelgrove at 562-8833.
   

4 comments:

Anonymous said...

anybody that owns property should know all this already.

Anonymous said...

Why was there not belt tightening in the hallowed halls, including a salary/wage cut to accommodate the loss in revenue, primarily from taxes. This is where the buildup was, and was this buildup not justified on the basis of Future Growth as we entered the 21st Century. This growth did not happen.

Ya, it's not your fault etc etc, but was there a reality check for the new council, or did you all fall into a situation where you were critical for no reason when slamming the last regime? I do not see the info flowing forward from your new and transparent group. Time for a Townhall Meeting n'est pas to spread the good word.

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Crowsnest Pass Home said...

Wages can not be "cut" we have a collective agreement with the employees which does not end until Dec 31st.
Keep in mind this is our first budget we have three more to come.
With what we had for an administrative team, and the information available to us I think we did a pretty good job.
Personally do I believe there is more room for "belt tightening"? absolutely. It will only be three months and the budget process will begin again.
The reaction I have had from the public is that this was a good first step. But there is more that needs to be looked at.

Anonymous said...

It is frustrating when we have to pay $6000 in taxes for a garbage pick up and the road gets graded (gravel put down) ONCE a year, and snow clearing gets done MAYBE 3 times in the winter months, there is NO other services from the municiple, other than fire/ambulance if needed? Snowing clearing has not taken place within 24/48 hours of a heavy snowfall, but yet we HAVE to pay the taxes!! Frustrated Resident.