Massive Tax Increase for Calgarians

[Jack]

Interesting. As Saskatchewan announces a record tax cut the other week, Bronco`s just announced a 23.3% tax hike for Calgarians. Pretty surprising for "the economic engine of Canada", wouldn`t you say?

Excerpts from an article just sent to my inbox:

-Operating and capital budgets include a 9.6% bump in 2009, a 6.8% hike in 2010, and a 6.9% increase in 2011.

-Finance Committee Chair Gord Lowe: "...the second year, you`ll find very little growth, with some very moderate growth in the third year which reflects council`s recognition of the uncertain economic times..."

-Canadian Taxpayers Federation`s Scott Hennig said the numbers are "insane" and higher than the average Calgarian can afford. "This will be very punishing for Calgarians who won`t see anywhere near that kind of wage increase".

 

[Thomas Beyer]

QUOTE (Jack @ Nov 7 2008, 07:13 AM) Interesting. As Saskatchewan announces a record tax cut the other week, Bronco`s just announced a 23.3% tax hike for Calgarians. ...
the media has it WRONG !!!

a 23% increase in 3 years assuming your house assessment is the same ! If your house is worth 15-20% less today than in 2007 it is a very small increase !!!

 

[Jack]

QUOTE a 23% increase in 3 years assuming your house assessment is the same ! If your house is worth 15-20% less today than in 2007 it is a very small increase !!!

Good point, but...

Bronco`s identified a need to increase revenue, and he`s doing it through a property tax hike. You don`t think, even if the assessed value doesn`t equate to the market value, that he`s going to try and get away with the highest value that he can? Sure, the public can dispute the assessment - but who`s got time for that? The reality is that these hikes will very likely happen (or else you wouldn`t get golden quotes like Hennig`s which I listed above), and the reality is that not much of a stink will be made about it, because most of us can afford it.

That being said - it`s still a decrease to disposable income, and it makes the required rents higher, neither of which favourable to the real estate investor.

 

[GarthChapman]

QUOTE (thomasbeyer2000 @ Nov 7 2008, 09:34 AM) the media has it WRONG !!!

a 23% increase in 3 years assuming your house assessment is the same ! If your house is worth 15-20% less today than in 2007 it is a very small increase !!!


Thomas, are you sure of that? Or am I not understanding what you mean?

Municipalites use mill rates to adjust the relationship between tax rates and property values. If not for that method they could not budget. Instead they would have seen a 30% windfall tax increase in Calgary and Edmonton in 2006 and again in 2007! So by extension a 20% property value decrease would create a 20% reduction in overall tax revenues - can you imagine the cuts required to adjust to that?

 

[wealthyboomer]

With everyone in this forum, we should be able to come up with some tax-cutting solutions to present to the City of Calgary.

Any Suggestions?

 

[Thomas Beyer]

QUOTE (GarthChapman @ Nov 7 2008, 12:59 PM) Thomas, are you sure of that? Or am I not understanding what you mean?

Municipalites use mill rates to adjust the relationship between tax rates and property values. If not for that method they could not budget. Instead they would have seen a 30% windfall tax increase in Calgary and Edmonton in 2006 and again in 2007! So by extension a 20% property value decrease would create a 20% reduction in overall tax revenues - can you imagine the cuts required to adjust to that?
The city will have to adjust the millrate, as too many home owners will appeal their taxes otherwise .. hence the tax assessment usually is slightly low for that one reason: they cannot handle a mass tax appeal .. hence the massive % hike off a lowered base !!

 

[bearhunter007]

In my opinion the Mill Rate is an internal calculation that the city does with it tax base.

At the end of the day I compare my "new" tax bill in dollars to what I paid last year. In my opinion Bronco is at the begining of his term so he is going to push the envelope.

I believe they will bait and switch since they want to shock us with a high rate initially. Then silly council will "work" and cut the rate increase. The question is what the switch rates will be.

Bearhunter007