Property tax notices were mailed to Airdrie households May 28 and many residents do not understand how the numbers are derived.
“We have had many, many residents calling in asking how their bills are determined,” said City of Airdrie communications coordinator Tara Richards. “They heard that Airdrie was raising taxes by 3.97 per cent when the budget was determined. But they don’t realize that doesn’t mean each household’s taxes will rise by 3.97 per cent. It can be very confusing.”
Suzette DeMott, manager of assessment, taxation and utilities, agrees. She said the process for determining property taxes is complicated.
“Yes, council did approve a 3.97 per cent increase to the total amount of municipal taxes raised in 2010,” she said.
“Each year, council approves the amount of revenue required to support City services. From this amount, sources of revenue other than property taxes, such as provincial grants, investment income, licenses and permit fees, are subtracted. The balance is the amount to be raised by property taxes – 3.97 per cent.”
She said that percentage is not directly connected to each individual increase or decrease.
“Your property taxes are based on a number of factors including the assessed value of your house, which depends on if you live in a single-family home, a duplex or a condo and what community you live in,” said DeMott.
“Different areas and different types of housing appreciate or depreciate at different rates.”
She said renovations or additions to your home, an expansion of a new community and completion of a home that was previously under construction can all drastically increase property taxes.
Each community’s average assessment will change based on what is happening in the market place in that area. The overall average assessment in 2009 for single family homes in Airdrie was $364,500 with taxes of $1,948 and the overall average assessment in 2010 is $342,700 with taxes of $2,089. The overall single family assessment decreased by 5.98 per cent, however, some communities decreased more or less than the average and some increased.
Reunion saw the biggest increase at 33.67 per cent and Big Springs saw the largest decrease 11.64 per cent. Airdrie Meadows duplexes decreased by 13.76 per cent and condos in the same community decreased by 23.14 per cent.
The City also collects taxes for the Province for education. For 2010, these taxes represent 34.08 per cent of each property tax bill.
“Many people don’t understand that all the money doesn’t come to the City,” said DeMott.
“We don’t see any of that portion. We send a cheque to the Province.”
About 90 per cent of the single family residential properties saw a decrease in their assessed value and 87.87 per cent of all properties have experienced a tax increase in 2010.
“It is the ultimate goal of the City to ensure that we have accurate and complete assessment and taxation ledgers to ensure that each and every person is paying their fair share,” said DeMott.
“We don’t want them paying any more or any less than the value of their home.”
According to provincial statistics, the City of Airdrie has the second lowest property taxes out of 21 comparable communities in Alberta.
“We are known as a jurisdiction that really gives value for the tax dollar,” said De Mott.
Visit the City’s website at www.airdrie.ca for a detailed description of how property taxes are determined.
