BONNYVILLE – The mill rates for residential and multi-family residential properties are up and non-residential properties are down.
On May 10, the Town of Bonnyville council approved the 2022 Tax Rate Bylaw for all classes of properties within the town.
The bylaw was necessary to process the assessment tax notices for residents and business owners based on the operating capital budgets that were passed by council at the April 12 regular council meeting, which included an average municipal tax dollar increase of two per cent.
“The mill rate for residential properties has increased overall by 0.35357 mills,” outlined Renee Stoyles the general manager of corporate services for the Town.
“That is due to an increase in the school and seniors requisition, the two per cent municipal tax dollar increase, as well as a decrease in the residential assessments overall.”
The mill rate for multi-family residential properties has also increased by 0.38357 mills, again due to an increase in requisitions, the municipal tax increase, and a decrease in the multi-family assessments.
“However, the mill rate for non-residential properties has decreased by 0.21293 mills and that is even though there was an increase in school and seniors requisition and the municipal increase,” Stoyles pointed out.
“The increase in non-residential assessments offset a non-residential mill rate increase.”
Breaking the numbers down further, Stoyles explained that the overall mill rate increase will translate to a 3.56 per cent increase for residential properties, 4.03 per cent for multi-family residential properties and a decrease of 1.43 per cent for non-residential properties.
These rates were also impacted by requisitions the municipality is required to collect on behalf of the Government of Alberta, which includes funds for schools and seniors' housing.
For 2022, the Town will be responsible for collecting just over $2.93 million for all school divisions operating within the municipality and $65,162 for seniors’ housing.
Property taxes to offset Town expenses
The estimated municipal expenditures and transfers set out in the Town’s 2022 budget total over $22.7 million. Whereas the estimated revenues and transfers from all revenue-generating sources other than taxation are estimated at $14.6 million.
The balance of $8.11 million needs to be raised by the Town’s general municipal tax.
Each year, Town council is required to set sufficient tax rates to meet the estimated expenditures and requisitions for the current year based on the assessed value of all property within the town – creating an equivalent levy against that value.
In 2022, all residential and farmland property in the Town of Bonnyville was assessed at a combined value of over $537 million. Multi-Family Residential property was assessed at about $27 million. Non-residential property in the Town was assessed at more than $364 million.
Based on these assessments, the Town can expect to collect $5.79 million worth of taxes for all residential property, and $5.31 million for all commercial property.
Translation to property taxes
So, what does this mean for residents and business owners? According to estimates from the Town of Bonnyville, a residential property with an assessed value of $265,500 for 2022 will see an overall tax bill of $2,731, which is an increase when compared to the previous year.
The municipal portion of the taxes comes in at about $1,899, while the school requisition is roughly $727, and the seniors requisition is $18.71.
That same property was assessed at $262,850 in 2021 and the overall taxes were $2,611.52.
A multi-family residential property that was assessed at $445,350 for 2022 will see an overall tax bill of $4,410, approximately $87.62 more than last year. That same property was assessed at $454,090 in 2021 and the overall taxes were $4,323.07.
The municipal portion of the taxes will come in around $3,158 with about $1,221 for the school requisition and just over $31 for the seniors’ requisition.
It is important to note, however, on average residential assessments did see a drop in 2022.
A commercial property assessed at $1.43 million for 2022 will see their taxes come in at just over $20,885, an increase when compared to 2021.
Previously, the same property was assessed at $1.37 million, and the overall taxes were just over $20,311. Of that, $14,909.86 was for municipal tax, $5,322.86 was for the school requisition, and the seniors requisition was $78.75.
