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Council passes 2020 Tax Rate Bylaw

May 13, 2020 5:45 PM
(Red Deer, Alberta)

The 2020 Tax Rate Bylaw was passed by City Council after budget reductions were passed earlier this week.

During a regular council meeting on Monday, Council passed first and second reading of the bylaw after amending the 2020 budget to reduce overall operating expenses by 0.46 per cent to maintain the City operating expense portion of the budget at the 2019 level. Council passed third reading during their meeting today.

The municipal tax portion saw a small tax increase of 0.5 per cent for capital, combined reductions in The City’s operating budget and the provincial education requisition will result in an overall reduction in 2020 tax bills for many property owners. 

Taxes will change based on how each individual property’s assessment value changes compared to the overall assessment change for the tax class.

Residential and non-residential property owners will on average see a decrease of 1.36 per cent to their overall tax bill, while multi-family properties will see an increase of 1.29 per cent in order to keep all residential type property tax rates the same.

“We recognize the challenges residents and businesses are facing during the pandemic, and we’ve taken a number of steps to relieve some of that financial pressure,” said Mayor Tara Veer. “The City still has to collect municipal taxes to fund essential services like police, emergency services and public works, which remain critical every day throughout this crisis but we hope the overall reduction and option to defer payment will help households and businesses in our community.”

In addition to reducing the budget and overall tax burden, The City has undertaken a number of initiatives to ease residents’ financial burden, including deferring payment of utility bills, extending the tax deadline, and most recently amending the Tax Instalment Plan (TIP) program to make it easier for new tax payers to join.

“The TIP Program provides essential cash flow for The City while offering residents an affordable way to manage their taxes,” said Revenue and Assessment Manager Joanne Parkin. “Through TIP, residents can pay their taxes in monthly instalments over the course of the year without penalties, rather than a lump sum payment when taxes are due.”

The Tax Instalment Plan (TIP) program was recently amended to reduce financial strain for new participants by removing the requirement for an initial lump sum payment. New participants will see their tax bill divided into equal payments for remaining months of the year, rather than owing payments for missed months upfront. The deadline to sign up for TIP is still June 15, and property owners can sign up online at reddeer.ca/TIP.

Tax notices will be mailed out at the end of the month and will provide residents with information about their overall tax bill, how they can pay, and the new September 30 payment deadline, as well as provide connections to financial supports available during COVID-19.

For more information, please contact:

Communications & Strategic Planning
The City of Red Deer

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