Edmonton property tax increase set at 5.7%, lower than expected

On Tuesday, Edmonton city council discussed what final property tax rates will look like.

The municipal rate tax rate is now locked in at 5.7 per cent – lower than expected thanks to changes in provincial grants.

But homeowners can expect to see an increase of six per cent on their total tax bill when Alberta’s increase to education property taxes is factored in.

One city councillor is calling out the province, claiming they are passing off an increase in tax to city leaders.

“Actually it’s the province of Alberta that is raising their property taxes, all we’re doing is collecting that money,” said Michael Janz, the councillor for Ward papastew. “We have no control over how much the province is charging in education tax.”

Janz wants the province to collect the education tax on their own behalf, saying he’s facing frustration from constituents thinking city councillors are behind the increase.

“That money is just going to general revenue,” Janz explained. “The money that we’re paying for education tax is not going to Edmonton Public Schools, it’s not going to Edmonton Catholic Schools.

“It’s not a direct a line item. It’s going into provincial revenue that they allocate across Alberta.”

Councillor Aaron Paquette shared the frustration, saying the education property tax increase negates the effects of city council’s advocacy to restore some funding in this year’s budget, which would have lowered property taxes more.

“That four per cent reduction now only becomes a one per cent reduction as they balance,” Paquette said. “They give with one hand but take with the other.”

In response, Alberta Minister of Municipal Affairs Ric McIver tells CityNews: “The education property tax has historically funded one-third of our education system, however this has not been the case in recent years. By restoring the education property tax to previous funding levels, we are making record investments into education to the tune of more than $9.8 billion to address growing enrollment pressures.

“Municipalities are encouraged to clarify to their residents that the education property tax is levied by the province so Alberta’s government can reinvest all of it in supporting the success of our students in our world-class education system.”

Home and business owners can expect to see their tax notice in May.