For Immediate Release
May 31, 2024
TABER, AB — The Municipal District of Taber (MDT) gave third and final reading to the 2024 Property Tax Rate Bylaw during their regular May 14, 2024 Council meeting.
The 2024 Property Tax Rate Bylaw includes the following adjustments to the municipal mill rates:
- A decrease of 4.0 per cent in the residential property tax mill rate
- A decrease of 3.0 per cent in the non-residential property tax mill rate
- An increase of 8.0 per cent in farmland property tax mill rate
The 2024 Final Operating and Capital Budget includes maintaining the minimum property tax payable per parcel at $40.00.
The 2024 property tax amounts are calculated based on the property tax assessment completed in 2023. The average residential property saw an assessment increase of 16%, the average non-residential property (commercial, industrial, and linear) saw an assessment increase of 8%, and the average farm assessment saw no change. Although the tax rate for residential and non-residential properties has decreased, properties with significant assessment increases may experience an increase in their total municipal tax bill.
The 2024 Property Tax Rate Bylaw raises a total of $18.3 million, a collection increase of $1.1 million from 2023. Assessment growth this year totalled $80 million and generated an additional $683,000 in tax revenue, 62% of the increase in property tax collected. Assessment growth is the new buildings, improvements, and linear assets added to the assessment roll this year.
The rates put in place by this bylaw collect the revenue required to support the approved 2024 operating and capital budgets passed late last month. The newly approved operating budget projects a $868,500 operating budget deficit ($617,000 in 2023), which includes a non-cash expense of $4.5 million for amortization. With this, the 2024 final budget provides $3.7 million in cash from operations to be allocated to capital expenditures or transferred to reserves to fund capital infrastructure investment.
The 2024 operating budget increases water and sewer utility fees by 5%, to maintain near-full cost recovery for water costs (excluding amortization). This plan was put in place utilizing asset management to reduce the reliance on property tax dollars to fund water and sewer operating costs. Once full cost recovery for water costs is achieved, water and sewer utility fees will continue to be subject to inflationary amounts in future years.
Other highlights include:
- MDT has once again included more than $600,000 in Contributions to Recreation Initiatives led by neighbouring municipalities and local service groups in 2024.
- In 2024 MDT has budgeted to Contribute $163,000 to Local Libraries.
- The budget for Investment Interest increased by $400,000 based on current interest.
- The 2024 interim operating budget proposes a 3.0% cost of living adjustment (COLA) to salaries and wages, merit-based performance management, and staffing allocation changes.
- The Province of Alberta has downloaded the costs of frontline RCMP officers to municipalities using the Provincial Police Funding Model. The Provincial Police Funding Model will cost MDT residents $585,000 in 2024 without seeing an increased level of service.
- The budget for Uncollectible Taxes increased to $700,000 (an increase of $200,000 or 40% in 2024). This amount relates directly to a select few oil and gas linear properties that have failed to pay taxes and the municipality will likely not be able to recover the municipal revenue because the company is insolvent or under creditor protection.
Documents:
- View the final approved 2024 Operating and Capital Budget
- View the final approved 2024 Property Tax Rate Bylaw
- View the Budgets and Tax Rate Bylaw Presentation to Council
- View the 2024 Budget Property Tax Insert
Small Business Subclass
The Small Business Subclass program is available to all small business properties (other than designated industrial properties) that are owned or leased by a business that has fewer than 50 full-time employees. The Subclass offers up to 25 per cent in tax savings compared to other non-residential properties. The deadline to register is February 15th of the assessment year to be applied to the following tax year. An application must be submitted annually.
