Council eyes 7 per cent tax increase
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Red Deer city council will consider approving an average combined municipal and education tax increase of seven per cent on Monday.
City officials were waiting to find out the education tax increase from the province before setting the final tax increase for 2008.
This year’s education tax increase is 5.2 per cent. When blended with the municipal tax increase approved in January, the combined rate is seven per cent.
Council had previously estimated the municipal tax increase would be 8.66 per cent.
In order to get an equal combined tax rate for all property classes, including non-residential and multiple-family, that figure is now being calculated at 9.2 per cent.
If city council approves the combined seven per cent tax hike, a typical single-family property assessed at $300,000 will cost $132 more in taxes a year, bringing the annual tax bill to $1,995.
This would compare to $1,863 paid in 2007, when taxes were raised by about 7.6 per cent for a $300,000 property.
If the 2008 combined rate is approved, the city would bring in a total of $75.9 million in taxes, including $41.2 million from single-family residential properties, $30.7 million from non-residential, and $4 million from multiple-family residential.
Contact Lana Michelin at lmichelin@reddeeradvocate.com
