Lac Ste. Anne County council is breaking down the municipal tax bill for residents, and raising concerns about the increasing provincial costs affecting that bill.
County Reeve Jurgen Preugschas notes, the final property tax bill residents see includes costs outside of municipal control.
“Residents receive one property tax bill from the county, but not all of the costs on that bill are decisions made locally. It’s important that residents understand which portions of their tax bill are determined by the province. Clear communication helps ensure taxpayers know where their money is going.”
One portion is the provincial education property tax, which is required to be collected by municipalities on behalf of the Alberta government. The rates are set by the province, and once collected, the funds go to the Alberta School Foundation Fund to support K-12 education.
On a residential property assessed at $400,000, for example, the county says the provincial education property tax is increasing to approximately $1,108 per year from $1,040, an increase of about $68. That’s before any changes to related property assessment.
Policing costs are also going up, which the county notes is largely outside of its control. Municipalities are required to contribute to this cost, making it a recurring budget item funded through the property tax base. A portion of the taxes collected is therefore remitted to the Government of Alberta for the policing services.
Using the same example of a property assessed at $400,000, the provincial policing portion of what’s collected is increasing to about $144 per year from $108, a $36 bump.
County council says these increasing provincial costs are constraining municipal budgets and affecting taxpayers.
“Council understands the importance of funding essential services like education and policing,” said Preugschas. “However, when provincially driven costs continue to rise, it limits the flexibility the county has to manage property taxes and keep them affordable for residents.”
Council says it will continue to advocate for transparency and sustainable funding so residents can better understand how their property tax dollars are allocated.
