The new Alberta Municipal MGA intends to fix an issue that, at face value seems like a noble effort. The feedback received during the MGA review process indicated that the commercial tax rate has been growing at rates faster than residential rates.
The proposed solution is to limit the commercial tax rate to 5 times that of the residential tax rate. There are 19 municipalities above this amount. Below is a table based on the 16 that were over the limit in 2015 based on available data. In 2015 the average residential tax rate was 7.05 and the average commercial tax rate was 12.24. All but one municipality on the list below are counties or improvement districts. All of the municipalities have a lower residential tax rate than the average. In fact, all but 1 have a residential tax rate less than half the average. 7 of the 16 municipalities also have a commercial tax rate that is below the average.
Unfortunately the fix for most of the offending municipalities is to raise the residential tax rate to make the gap between the 2 tax rates less than 5 to 1. An unintended consequence for sure and one worth further consideration.
|MUNICIPALITY||Residential Tax Rate||Non-Residential Tax Rate||Multiple of Non Residential to Residential|
|CLEAR HILLS COUNTY||1.3022||14.6459||11.25|
|OPPORTUNITY NO. 17, M.D. OF||2.2421||19.8389||8.85|
|WETASKIWIN NO. 10, COUNTY OF||1.8000||13.1||7.28|
|I.D. NO. 09 (BANFF)||0.4155||2.8||6.74|
|TWO HILLS NO. 21, COUNTY OF||3.5058||21.8709||6.24|
|WAINWRIGHT NO. 61, M.D. OF||3.0438||17.844||5.86|
|I.D. NO. 04 (WATERTON)||1.1800||6.7924||5.76|
|VERMILION RIVER, COUNTY OF||2.0655||11.6265||5.63|
|BONNYVILLE NO. 87, M.D. OF||2.7663||15.5||5.60|
|ST. PAUL NO. 19, COUNTY OF||3.4095||17.5074||5.13|
|JASPER, Municipality of||2.5330||12.918||5.10|
|LESSER SLAVE RIVER NO. 124, M.D. OF||2.2416||11.3028||5.04|