Property tax - is there a better way?
Published July 3, 2009
Most residents have just completed their yearly trip to Mecca and have just paid their taxes. Market value is the basis of assessment and though it may be easy to understand, questions abound as to why July 1 is the magic date. How do you encourage people to upgrade their properties if the end result is higher taxes? Why are there only disincentives and not incentives to improve our community by improving our homes?
Municipalities are governed by the Alberta Municipal Government Act (MGA) and Part 9 Assessment of Property, Part 10, Taxation and Part 11, Assessment Review Boards clearly lay out what a municipality can and cannot do with respect to collecting your dollars to pay the bills for the services you receive.
Though I don't expect we will see a major shift from property tax, wouldn't it be interesting if we went away from property tax and moved towards a consumption tax at the municipal level? I'm certainly not the finance guru but there must be a magic number that would allow us to completely remove property tax and still fund municipal services. Couldn't that be an added incentive to shop locally because it also increases your investment in your community and wouldn't that be an interesting reason to live in Strathcona County - no property tax. Do you think that might attract more industry and increase job opportunities right here in Strathcona County?
The Municipal Government Act of Alberta is scheduled to be reviewed in 2010. Outdated in some areas (Section 48 and 49 Ambulance Services), it not only provides an opportunity to bring the act up to date but the opportunity also exists to once again become leading edge in Canada also exists. When Alberta's current MGA was first introduced in 1994 as a major consolidation of municipal legislation, it was touted as the most advanced in the country. It gave municipalities greater autonomy in local decisions. It recognized rural communities as equals to urban municipalities.
When next reviewed, wouldn't it be great if municipalities would have the tools to use other methods than property tax to raise money? Could we have the province take on the responsibility to collect school taxes? Could we go to four-year terms - reducing the cost to municipalities and prolonging the "election grandstanding" cycle? I hope we will have a thorough review of the act and not just window dressing.
Jacquie Fenske
Councillor, Ward 5
780-464-8147
fenske@strathcona.ab.ca
Last updated: Wednesday, March 24, 2010
Page ID: 2034