Calgary Mayor Jeromy Farkas anticipates a more moderate property tax increase from the Alberta government next year after years of substantial hikes. Farkas revealed that Premier Danielle Smith assured him personally of a lower tax increase compared to previous years. Currently, 42% of residential property taxes in Calgary are allocated to the province for funding Alberta’s education system. The Alberta government had proposed a 21% increase this year, following a 15.6% hike the previous year.
Farkas aims for the upcoming provincial budget increase to align more closely with inflation. Last year, the city council managed to reduce a projected 6% municipal tax increase to around 1.2%, resulting in an average 8.1% property tax hike for Calgary homeowners when combined with the province’s increase. Farkas stressed the importance of keeping next year’s total increase below the previous mark.
While no final budget decisions have been confirmed, a provincial spokesperson emphasized the importance of providing details before Calgary’s budget deliberations. The potential for a lower tax increase from the province is welcomed by the city council as they work on finalizing a four-year budget. Farkas highlighted the need to prioritize funding for essential infrastructure repairs to address the city’s deteriorating infrastructure.
City council member DJ Kelly acknowledged concerns from residents about affordability amidst potential tax raises. Kelly noted that a reduced provincial property tax increase would allow the city more flexibility in balancing funding for local services with affordability. Councilor Andre Chabot suggested that the province, with its current surplus, should contribute to municipal budgets to ease the tax burden on residents and reduce criticism towards city hall. Chabot emphasized the need for transparency in tax collections to alleviate public confusion about where the tax money goes.