No tax increase for businesses this year, Edmonton council votes
Council raises municipal tax levy on homeowners 2.5 per cent
Businesses in Edmonton are getting a bit of a break on their taxes this year after city council voted Wednesday to freeze the municipal portion of the tax bill for 2020.
At the same time, council agreed to increase the municipal tax levy on homeowners by 2.5 per cent — up from a 2.1 per cent approved in December.
The approval factors in a change from the province, with the Alberta government not collecting the education portion of the tax levy. That means businesses will end up paying two per cent less and homeowners, typically, no more than they did last year.
Council chose the formula over another option to increase taxes for both by 1.3 per cent, which would have yielded the same overall municipal increase of 1.3 per cent.
A 1.3-per-cent tax increase for the owner of an average home in Edmonton would equal about $30 more a year, the city said.
Coun. Ben Henderson voted for the zero per cent increase for businesses, saying it will have a profound impact on businesses rebounding after COVID-19 pandemic measures are lifted. He said he spoke with some of his constituents, who supported this option as well.
"I think because they recognize that our ability to bounce back as a city is going to be far more dependent on making sure our businesses are healthy than whether or not we can give a $30 break to homeowners this year."
The amount homeowners are billed will vary based on their assessed values, which have shifted since last year, the city said in a news release sent after the council vote.
Multi-family properties went up in value more than single-family homes.
"Generally, about half of property owners will see higher increases while the other half will see lower increases or even decreases," the release said.
The city said the owner of a typical home valued at $387,000 will see a decrease of $28.
The decrease in tax for a single family dwelling is related to market value assessment.
Property tax notices will be mailed on May 21 and are due in June.
Council agreed last month to defer penalties on unpaid taxes until Sept. 1.
The decision made Wednesday is part of the adjusted $3 billion operating budget for 2020.