CITY OF COLD LAKE RELEASE:
During its May 28 regular meeting, City Council voted unanimously to set the 2024 municipal tax rates, resulting in an average municipal property tax increase of 4.98 per cent.
The 2024 residential tax rate was set at 8.3635, down from 8.4948 in 2023, the multi-family residential tax rate was also set at 8.3635, down from 9.0819, and the non-residential tax rate was set at 13.5079, up from 13.1707 in 2023.
The tax rates for properties that fall into the new vacant subclasses were set 10-per-cent higher than their non-vacant counterparts, with vacant residential set at 9.1999, and vacant non-residential set at 14.8587. Properties are considered vacant if they have been subdivided, can be readily serviced, but have remained undeveloped for seven years or more. An incentive program ensures that properties which fall into the vacant tax subclass can be rebated the difference between the amount generated by the vacant versus the non-vacant subclass, plus an additional five per cent if they are put up for sale.
These rates will generate about $23.45 million from properties within the City to balance the City’s $58.01 million operational budget, which includes a transfer to the capital budget of roughly $6.74 million. In 2023, the City collected $22.19 million in taxes to balance its budget.
“Inflation remains a factor in our budget deliberations, but we are trying to pass as little as possible of the inflationary pressure we are seeing to residents,” Mayor Craig Copeland said. “Our budget continues our major infrastructure projects without making any drastic changes to services. We are holding the line while doing what we can to prepare for growth as major projects in our region begin to ramp up.”
The tax rate set by City Council is a factor used per $1,000 of property value to determine the amount of taxes a property pays for municipal services. Taxes are based on a property’s assessed value, which means that a tax rate increase or decrease does not necessarily mean an increase or decrease in the amount of municipal tax a property owner will pay compared to previous years. Depending on the change in assessment and tax rate, the impact will vary from property to property.
The City’s total taxable assessment increased by $140.4 million when compared to 2023, representing the largest increase in assessment since 2014. Taxable assessments increased by $27.3 million for new construction and $113.2 million due to inflation.
Tax notices will be sent out by Friday, May 31, 2024, with a payment deadline of June 30, 2024.
For more information on the City’s capital and operational budgets, visit www.coldlake.com.
Information regarding past tax rates and the municipal property taxes collected can be found in the City’s annual report, also available online.
