Property taxes are levied based on the value of the property as determined from the property assessment process.
Often the terms “assessment” and “taxation” are considered to be interchangeable. However, assessment and taxation are very different. Although one impacts the other, each is a distinct and independent process.
- “Assessment” - is the process of placing a dollar value on a property for taxation purposes.
- “Taxation” - is the process of applying a tax rate to a property’s assessed value to determine the taxes levied and payable.
The Municipal District of Taber collects municipal property taxes in order to provide services, which include water, sewer and waste services, mowing & tree spraying, road construction and maintenance, parks and recreation facilities, municipal planning, fire and emergency services, Community Peace Officers, pest/weed control. Property taxes are not a fee for service, but a way of distributing the cost for local government services and programs fairly throughout a municipality.
Under the Municipal Government Act, municipalities are responsible for collecting taxes for not only municipal purposes but also for educational and seniors housing purposes.
Each year, Municipal Council determines the amount of money needed to operate and support municipal services. From this amount, sources of revenue other than property taxes, such as user fees and provincial grants, are subtracted. The balance, is the amount needed by the municipality to collect through property taxes.
Once Council has determined the amount of property tax revenue required to operate for the year, the amount is then used to calculate and establish the tax rates.
The tax rates are determined based on the total taxable assessment and budget requirements of the municipality, and in the Municipal District of Taber they are generally approved by Council in early to mid-May of each year.
Tax rates are commonly referred to as “mill rate” and expressed as dollars of tax per $1,000 of assessed value.
As a requirement of the Municipal Government Act the Municipal District of Taber is required to pass a taxation bylaw ever year which sets out the annual taxation amounts on all property types in the Municipality. Click on the link below to view the current property taxation bylaw or search our Documents page to view prior year’s property tax bylaws.
Municipality’s may levy a minimum amount of property tax. The Municipal District of Taber’s 2020 Property Tax Rate Bylaw # 1964 specifies that a minimum amount of $30.00, is payable as property tax. Any property that results in a calculated tax levy of less than $30.00 for 2020 property taxes will receive a tax notice of $30.00 owing.
Property taxes are calculate by multiplying the assessed value of the property by the property tax rate and dividing by one thousand, set by the Municipal Council annually.
Example - a Residential Property with a Total Assessed Value for the 2020 Tax Year of
$350,000 x (6.5324/1000) = $2,286.34
Property Assessment x Tax Rate = Taxes Payable
The Education Property Tax is collected every year from all property owners in Alberta. Each year, Municipal District of Taber receives requisition from the Alberta School Foundation and Holy Spirit Roman Catholic Separate District #4. The Municipality must collect the requisitioned funds and forward to them. All property owners pay the education property tax (with some exceptions, such as non-profit organization and seniors’ lodge facilities).
Alberta’s quality education system supports and benefits all Albertans by producing the workforce of tomorrow, therefore even those without children in school also pay the education property tax. The Municipality cannot change the education rates or the requisition amount set each year.
The Alberta School Act provides that, where both a Public and a Separate School District exist in the same area, all individuals who are of the Roman Catholic must direct their taxes in support of schools to the Catholic School District. All other individuals must direct their taxes in support of schools to the Public School District. This is applicable in the Municipal District of Taber, only to property within the Holy Spirit Roman Catholic Separate School District No. 4 as per Ministerial Order, of the Government of Alberta. To obtain a declaration form, please contact the Tax Clerk at the Municipal District of Taber.
For more information on Education Property Taxes visit https://www.alberta.ca/education-property-tax.aspx
The Municipal District of Taber also receives a requisition each year from Taber & District Housing Foundation, they provide affordable housing for seniors. By legislation, under the Alberta Housing Act, The Municipality is required to collect these funds from municipal property owners similar to the education requisition.
There may be additional charges on your Property Tax Notice for previously approved local improvements. Local Improvements include new or replacement construction projects intended to upgrade specific areas/ Hamlets. Examples are street paving, sidewalk replacement, and water/sewer infrastructure.
The Seniors Property Tax Deferral Program allows eligible senior homeowners to defer all or part of their annual residential property taxes through a low-interest home equity loan with the Government of Alberta.
For more information view the Seniors Property Tax Deferral Program (PDF)
The Municipal District of Taber relies on the collection of property taxes to provide services, maintain infrastructure and to meet our financial obligations. Part 10 of the Municipal Government Act provides a means for municipalities to ensure that all businesses and individuals required to pay tax do so. This is called the tax recovery process and uses the following timelines and procedures;
- A tax notification will be registered against a property when there are tax arrears for more than one year. (Taxes become arrears after December 31 in the year levied.)
- After registration of the tax notification on the property's certificate of title, the Provincial Land Titles Office will notify affected interest holders in the property.
- The property be offered for sale by public auction no later than two years following the date of registration of the notification in accordance with Section 418(2) of the Municipal Government Act.
- If the property is sold at the public auction, the Municipality proceed to provide clear certificate of title to the purchasers in accordance with Section 423(1) of the Municipal Government Act.
- If the property is not sold at the public auction, the Municipality proceeds to become the owner of the property in accordance with Section 424 unless for liability reasons (i.e. contaminated lands), other alternatives be investigated.
It should be noted that at any time during the process a property can be removed from the tax recovery process if the taxes and any accumulated penalties and administrative charges are paid.
The following dates should be noted by all Municipal ratepayers:
•January 1, 2020 – 12% penalty applied to all outstanding property tax amounts
•May 6, 2020 – date of mailing of Annual Property Assessment Notice
•June 2020 – 2020 Property Tax Notices mailed
•July 13, 2020-- deadline for filing assessment appeals (60 days from date of mailing)
•November 15, 2020 –2020 property taxes must be paid on or before to avoid penalty
•November 16, 2020 – 5% penalty applied to current taxes outstanding
Any payment for property tax forwarded by mail shall be deemed to have been received on the same date as the Canada Post Postmark stamped on the envelope in which the said payment was received. (Do not send cash by mail.)
The Municipal District of Taber will accept postdated cheques.
Drop Box- Payments may be deposited after regular office hours in the drop box at the Main Entrance of the Municipal District of Taber Administration Building – 4900B – 50th Street Taber, AB.
Financial Institutions - Most Banks and Credit Unions will accept payments for Municipal District of Taber property taxes. Ensure your payment is processed 3-5 business days before November 15th to avoid penalties.
On-Line/Telephone Banking Payments- On-Line payments through your financial institution. Enter ‘Municipal District of Taber' as the payee, and your 'Roll number' as the account. Ensure your payment is processed 3-5 business days before November 15th to avoid penalties
Credit Card - The Municipal District of Taber is now able to accept credit card payments for property taxes through a service called “OptionPay”. “OptionPay” is a user-based fee payment system, which charges an automatic fee to the user based on the value of the transaction.
If you choose to pay by credit card via the Municipal District of Taber’s “OptionPay” Link to Pay, or for additional information about using the “OptionPay” service and the associated fees call the Administration office at 403-223-3541.
Terms of Payment: payment must be received by the Municipal District of Taber on or before November 15th to avoid all penalties. Taxes levied are deemed to have been imposed for the period from January 1 to December 31 of that year.
If you wish to receive a receipt for payment of property taxes please indicate such on the bottom portion of your remittance stub attached to your payment or contact the Tax Clerk @ 403-223-3541. Receipt issued in acknowledgement of a cheque or other negotiable instrument, shall be valid only when the amount of such has been collected by the Municipal District of Taber.
WHAT IS THE TIPP?
TIPP (Tax Installment Payment Plan) is a monthly tax payment plan that allows taxpayers the option to make manageable, convenient, budgeted monthly payment installments for property taxes by pre-authorized bank withdraw on the 15th of each month, rather than a single annual payment.
HOW DOES TIPP WORK?
Upon enrollment in TIPP, monthly payment installments will be calculated by dividing the prior year’s tax levy by the remaining months in the calendar year. Once the current year’s tax levy have been applied to the tax roll the remaining monthly installment amounts shall be calculated by taking the actual current years’ tax levy, subtracting the prior monthly installments that have been received to date ( if any), and dividing by the remaining months in the calendar year.
You will be notified on your tax notice of the total amount of installments paid to date and the new installment amount required for the remaining payment in the year, the last being December 15.
All previous years’ taxes and penalties, if any, shall be paid in full prior to being eligible to entering the plan.
Outstanding taxes for property tax rolls that are part of TIPP will not be subject to the 5% penalty applied to current taxes outstanding after November 15th of each year, unless the conditions stated in Bylaw #1915 and Agreement are not fulfilled by the Taxpayer.
HOW DO I APPLY AND WHEN CAN I START TIPP?
Taxpayer’s may enter into TIPP at any time prior to July 1st for payment of the current years’ tax levy. Application made after July 1st will be for the following tax year and installments will begin the following January. A void cheque or Bank Information EFT Form from your financial Institute must be attached to your application.
Applications are available at the Municipal District of Taber Administration Office or Link to TIPP Application
WHAT IF I CHOOSE TO CANCEL TIPP?
Taxpayers may cancel TIPP at any time upon fifteen (15) days written notice. All taxes shall then become due and payable in accordance with the Municipality’s Tax Penalties Bylaw.