The City of Red Deer is in the midst of a growth spurt. Through the 90's they like many communities the city held the line on taxes. Now with increases in population and further pressure on infrastructure and City services, Red Deer is facing a tax increase of up-to 7%. Quite a hike compared to other increases we face, but a needed one for long term prosperity. I don't think anyone likes to see increases in taxes, and especially not a 7% increases. I'm surprised cities are not embracing municipal legislation that limits the annual increases to a function of cost of living or other rates. It's popular to decrease or not increase the taxes, but at what price. A ceiling on increases such as the cost of living plus 1 maybe an option or simply not to exceed 5%. Puts added pressure on councils to be more creative or manage not just for today or their term but for the future.
Unhappy with your taxes? Any suggestions for council?
You may wonder how does this affect my resale value of my home? The answer is about $10 - $15/month, or $0.50/day. Depending on the tax you are currently paying the impact of 7% may be more-of a burden as well as your daily budget constraints that you face. Resale wise, everyone else is going up so your home is in the same "boat" as the rest of Red Deer. The concern maybe at some point we will not be as competitive with our tax structure as a neighboring city or province. How does our mill rate stack up versus others.
Your Friend in Real Estate,
More information was in the local paper, The Red Deer Advocate. Below is the article that was published in the Red Deer Advocate.
Council eyes 7 per cent tax increase
By Lana Michelin - Red Deer Advocate - April 25, 2008
Red Deer city council will consider approving an average combined municipal and education tax increase of seven per cent on Monday.
City officials were waiting to find out the education tax increase from the province before setting the final tax increase for 2008.
This year's education tax increase is 5.2 per cent. When blended with the municipal tax increase approved in January, the combined rate is seven per cent.
Council had previously estimated the municipal tax increase would be 8.66 per cent.
In order to get an equal combined tax rate for all property classes, including non-residential and multiple-family, that figure is now being calculated at 9.2 per cent.
If city council approves the combined seven per cent tax hike, a typical single-family property assessed at $300,000 will cost $132 more in taxes a year, bringing the annual tax bill to $1,995.
This would compare to $1,863 paid in 2007, when taxes were raised by about 7.6 per cent for a $300,000 property.
If the 2008 combined rate is approved, the city would bring in a total of $75.9 million in taxes, including $41.2 million from single-family residential properties, $30.7 million from non-residential, and $4 million from multiple-family residential.
Contact Lana Michelin at email@example.com
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