When determining the amount of Property Taxes to be paid, the Assessed Value of the property is only part of the equation.
“Each year City Council approves the amount of expenditure needed to support City services. To get the amount of revenues required from property taxes, The City takes the overall expenditure and subtracts all other sources of revenue like business taxes, licence fees, user fees and provincial grants. The balance is the amount to be raised through municipal property taxes. In order to calculate taxes, a tax rate is established. The tax rate reflects the amount of taxes to be paid for every $1 of assessed value.” – City of Calgary website.
Your property taxes are calculated by multiplying the assessed value of your property by the tax rates:
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Assessment x Municipal Tax Rate
Historical Tax Rates
If the City’s budgeted expenses are higher than the revenue that is to be collected, the tax rate will be increased to make up for the shortfall. Even if the assessed value of your property is lower than the previous year, you can still be paying more in taxes because of the increased tax rate your assessed value is calculated with.
Here are some news articles to browse through if you’re interested in more information:
- November 13, 2008 – Calgary Herald
A New Tax Plan
- November 7, 2008 – Calgary Herald
Q and A: Calgary Tax Increase
Get ready to pay extra year’s taxes with proposed increase
For more information on Property Taxes, TIPP, and your Assessments, visit the City Of Calgary website.
First Place Realty