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By rdnewsNOW Staff

5.29 per cent property tax

Red Deer city council approves property and Business Improvement Area tax rates

Apr 17, 2024 | 12:31 PM

Red Deer city council approved their annual property and Business Improvement Area (BIA) tax rate bylaws at their meeting on Monday.

Council is required to pass a tax rate bylaw when a property tax requirement has been approved in the operating budget. The bylaw determines how much property tax will be paid by each class of property and sets tax rates for requisitions The City collects on behalf of Alberta Education and Bridges Community Living.

The City’s budget was set by City Council in January with a 6.15 per cent municipal tax increase. When combined with the 2024 requisitions the average total tax increase is 5.29 per cent for each residential, non-residential and multi-family properties.

READ: ‘Challenging budget’: Red Deer property tax rate increases amended to 6.15 per cent

“We are pleased that the total tax increase for Red Deer property owners is lower than anticipated at budget time once requisitions have been added to the municipal requirement,” said Mayor Ken Johnston. “Maintaining a competitive tax rate, while ensuring the continuity of high-quality services is a testament to our commitment to fiscal responsibility and community wellbeing.”

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The tax increase means a typical house assessed at $345,000 for 2024 will pay $14.24 per month more in total property tax. This brings the total annual tax bill to $3,402 from $3,231 in 2024, which is an increase of $171 annually.

The deadline for payment of 2024 taxes is Friday, June 28. Unpaid taxes are subject to a seven per cent penalty on July 1.

Anyone not registered in the Tax Instalment Plan (TIP) and unable to pay their taxes by the deadline is being encouraged by the City to pay as much as they can to reduce penalties and reach out to Revenue and Assessment Services to discuss payment options. Property owners can still register for monthly payments through the Tax Instalment Plan (TIP) until June 15. More information is available on The City’s website, reddeer.ca/TIP.

Tax notices are scheduled to be mailed May 22, 2024. Property owners can sign up by May 1 via MyCity (reddeer.ca/MyCityLogin) to receive their property tax notice electronically. Notices will be distributed by mail if electronic notification is not selected.

BIA

The BIA tax rate bylaw funds the Downtown Business Association (DBA).

Following the approval of the 2024 DBA operating budget, council is required to pass a BIA tax rate bylaw. The bylaw reflects decisions made during budget deliberations and is the final step allowing the City to collect the approved funds on behalf of the DBA.

Officials say approximately one third of taxable businesses, taxed at the minimum tax rate set by the DBA board, will see a five per cent increase, or $10.09. The remaining businesses will have an average increase of 0.66 per cent, which, for a BIA taxpayer with an assessment value of $32,100, equates to an increase of $4. The increase to the minimum tax levy was proposed by the DBA board as part of their 2024 budget and was approved by council on December 4, 2023.

READ: Council approves 2024 budget for Downtown Business Association

“Downtown is the heart of Red Deer, providing centrally located services, entertainment venues and places for our community to gather and connect,” said Johnston. “The Downtown Business Association is an important partner in helping our community reach the vision outlined in the Downtown Activation Playbook and The City’s Strategic Plan. These funds are necessary to continue momentum and bolster DBA initiatives which benefit all Red Deerians.”

BIA tax notices will be mailed May 22, 2024, and taxes are due June 28, 2024. Outstanding balances will be subject to penalties in accordance with the tax penalty bylaw.

The DBA and BIA were established in Red Deer in 1983. The DBA advocates for BIA members, attracting new businesses, and showcasing a rewarding downtown experience. The BIA consists of 367 taxable businesses in a subset of the greater downtown area.

More information can be found on the DBA website.

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