Get Ready for Higher Property Taxes

City of Edmonton Counselors are patting themselves on the back this week after announcing that property tax rates are only projected to rise 3.6% next year.  While it is lower than the 5% they originally suggested in April, it’s still 3 times higher than what CPI has averaged this past year.

The City clearly has a spending problem.  To illustrate the long-running variance between tax growth and inflation, NAIOP Edmonton produced the following graph.

edmonton-taxes-and-inflation

We’ve written extensively about how the City of Edmonton is putting undue pressure on the property tax base.  Earlier this year, we highlighted how commercial and industrial property owners paid higher taxes (via the corresponding mill rate) than any surrounding municipalities, including Red Deer and Calgary.  And the differences are significant, with Edmonton property owners paying nearly twice the amount of taxes as Leduc, Nisku, Acheson and Sherwood Park.

Yes, the City needs to pay their bills and the property tax base plays a pivotal roll in collecting revenue to do so.  It is equally apparent, however, that the City is poorly managing expenses and we are all paying extra for it as a resultIn what environment, outside of government and corporate monopolies, could these incongruous increases be passed on to the customer without an upheaval? 

It seems like classic political maneuvering.  Tell the public that something proposed is going to be very, very expensive, then lessen the sticker shock by saying they were able to “make some cuts”, “find some savings”, “force some tough decisions” and have it come in lower.  In the case of property owners in Edmonton, counselors suggested property taxes might increase by an appalling 5%, then hoped to come off as fiscally responsible by proposing a more modest (read: slightly less appalling) 3.6%.

 


 

Disclaimer:

Information contained herein has been obtained from sources deemed reliable but is not warranted to be so.  Nothing contained in this article or on this website should be construed as real estate, investment, accounting or legal advice.  View full disclaimer here.

 

Our Team

CHAD GRIFFITHS

CHAD GRIFFITHS

Partner

Chad is a partner with NAI Commercial and has finished as a top 15 producer Canada-wide for the past three years. Chad owes his success largely to his commitment to uncompromising client representation, his active involvement in the real estate and business communities and a lifelong pursuit of continuous learning.

RYAN BROWN

RYAN BROWN

Partner

Ryan is a partner with NAI Commercial Real Estate in Edmonton. He is currently ranked nationally as one of NAI’s top advisors in Canada. Having completed his Bachelor of Commerce majoring in Finance, his eye for detail and great understanding of the numbers associated with any business decision makes him an asset to his clients while providing them the highest level of service.

DARCIE BOUTEILLER

DARCIE BOUTEILLER

Associate

Darcie began her career in Commercial Real Estate after completing her studies in Business Administration. Her personable nature coupled with a results-driven attitude is a perfect match for customers. Darcie understands the importance of delivering a custom, accountable solution for her clients.

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