House values jump, property tax levels out
The majority of homeowners in Calgary will see a property tax change of no more than 10 per cent, with those in the northeast most likely to see the highest bump in 2008.
The city released its preliminary residential property assessment Wednesday, revealing the value of a single family home in Calgary has jumped by 25 per cent over last year.
'Much of the city is very much within a manageable tax increase.' — Ian McClung, city assessor
In 2008, 85 per cent of homeowners will see a tax adjustment of between -10 and +10 per cent.
"Much of the city is very much within a manageable tax increase," said city assessor Ian McClung.
Homes in the northeast suburbsassessed at a higher value—such as Taradale, Falconridge and Abbeydale —are most likely to see a property tax increase higher than 10 per cent.
It comes down to simple supply and demand, said deputy city assessor Brian Moore.
"The real estate market is kind of like a pond that you drop a rock in and the values kind of move outwards over time," he explained.
"So what has happened now is the entry-level housing is now at the perimeter of the city and that entry-level housing is being bid up at a faster rate than the higher-priced housing in the core of the city."
Tax bill mailed out in May
Inner-city residents, who have complained of shouldering an unfair share of the tax burden in past years, are taking less of a hit in next year's assessment.
For example, Sunalta and Bankview residents could see their property taxes drop by 10 per cent or more.
"The inner-core people never thought we would get to a point where they were part of the norm," said McClung. "But we told them it was coming. It was just a matter of time and it has arrived."
The preliminarynumbers give people a sense of how much their taxes will change, but the citydoesn't mail out assessment noticesuntil Jan. 4.Residents have until Feb. 4 to appeal, and theactual tax billis sentin May.
City council has approved a 4.5 per cent property tax increase for 2008 as part of its three-year budget cycle, but that won't be finalized until April.