Municipal property taxes in Canmore for both residential and commercial properties will increase only slightly over 2013 rates.
Average residential properties assessed at $610,855, excluding tourist homes, can expect a $160 increase in municipal taxes, while commercial taxpayers can expect a $26 increase, for the average commercial assessment of $411,063. What percentage that represents, however, was not provided by the Town to the Outlook before deadline.
But with an expected reduction of 4.6 per cent in the education requisition from the province, the total tax bill for commercial properties will go down for the average property by $38 and up $93 for the average residential property.
Manager of financial services Katherine Van Keimpema explained each property’s municipal and total tax bill will vary from the average depending on its assessed value.
“That doesn’t mean everybody’s taxes are going to go up or down that amount, it means if you have the average in 2013 or the average in 2014, that is going to be the difference,” Van Keimpema said.
Council voted to adopt changes recommended by the Property Tax Task Force on the commercial and residential split of the total tax burden in two years instead of four and to implement a change to vacant serviced residential rates in one year and tax it the same as residential. The tax split target, based on comparable municipalities last year, is 65 commercial and 35 residential.
Mayor John Borrowman noted that, as per the task force’s recommendations, an examination of the average of comparable municipalities’ tax split could require changes annually for Canmore.
“Arguably (the average) could go up or down next year and this question would be before us again every year,” Borrowman said. “Potentially, we will be doing a little tweak (annually) to make the non residential tax rate balance or equal to our comparative communities.”
Councillors were unanimous in their vote to change the mill rate to reach the goal of 65/35 in two years rather than four to rectify an historical imbalance between the two classes of property.
“I think we have the opportunity to get there quickly because if you spread something out you pull the Band-Aid off slowly – you need to pull it off quicker and then it isn’t that painful,” said Councillor Sean Krausert.
Coun. Joanna McCallum, who recommended two years instead of four in April, said it fulfills a commitment to the business community to give those taxpayers the relief they need post recession.
“I believe the business community will be appreciative of this,” she said.
The task force’s mandate to review property taxes came out of concern in the community about the commercial, non-commercial split and was driven by the Bow Valley Builders and Developers Association.
Executive Director Ron Remple said he is not only pleased with the work of the task force and commitment from administration and council to listen to the issue and address it through recommendations, but the decision by council this week shows the municipality is interested in being business friendly.
“Either way would have worked, but the opportunity to do it quickly and get it addressed quickly, for me, from a business standpoint, what that says is that council is interested in making Canmore business friendly and that is what I would want to see moving forward as well,” Remple said.
