TAX NEWS - June 2010

Alberta Tax: Municipal leaders seek tax changes

The Alberta Urban Municipalities Association wants the province to review its assessment and property tax system, making a number of recommendations that will be presented to the province's mayors this week.

Ald. Bob Hawkesworth, chairman of the AUMA task force looking into the issue, said it's important to level the playing field.

"One of the key directions is to put all assessment onto the tax rolls," he said. "If there are economic development reasons to exempt certain properties from taxation, exempt them, but don't leave them off the tax roll.

"There needs to be a great deal more transparency in the system."

The report calls for a review of property tax exemptions, including those for not-for-profit organizations and machinery and equipment, as well as power plants excluded from paying education property tax.

The 27 recommendations also ask for a policy "to stabilize the education property tax between classes of property as a result of market value changes" and that the province "provides grants in place of taxes for all properties on which the Crown currently pays a grant based upon assessments that reflect the actual market value of the properties."

Alberta uses a market value assessment system, with values determined as of July 1 that are used as the basis for property tax bills.

In Calgary, just over half the bill a homeowner receives is the city portion of the taxes; the other half goes to the province. Hawkesworth said if the AUMA members approve a resolution on assessments this fall, the province will be asked to look at the recommendations.