Red Deer City Council approves zero percent tax rates
Applied to approximately 42,000 properties in the city, 54% of property tax revenue comes from residential properties, 6% from multi-family properties and 40% from non-residential properties.
The total municipal property tax requirement for 2022 is approximately $139,558,027. The city cites the most recent provincial data in 2020 that shows Red Deer’s overall property tax level was 12% lower than comparable cities, with per capita taxes of $1,339 compared to the average for $1,526.
For 2022, tax penalty rates have been lowered from 7% to 5%. Penalties are applied to unpaid taxes for the current year on July 1 and September 1 and to overdue taxes (unpaid taxes from last year) on January 1 and July 1. on the due date.
“We have made this change to provide financial relief to taxpayers who may be struggling due to the impacts of the pandemic,” said Joanne Parkin, Director of Revenue and Valuation. “We encourage anyone who is unable to pay their taxes by the deadline to pay as much as they can to reduce penalties and to contact our office to discuss payment options.”
The council also approved the 2022 Business Improvement Area (BIA) Tax Rate Bylaw. The BIA tax applies to the nearly 400 taxable downtown businesses to fund the Downtown Business Association budget. (DBA), which was approved by the Board in December. There was no increase in the tax revenue requirement of $252,000 and the minimum tax of $192.25.
“An increase in the number of businesses reopening or moving into the BIA may indicate signs that downtown businesses are beginning to stabilize and recover from the pandemic,” said John Sennema, Director of Economic Development. “That, in conjunction with a stronger economy, will hopefully continue this trend.”
The deadline for 2022 property and BIA taxes is June 30. Any unpaid tax will be subject to a 5% penalty on July 1. of the year in equal monthly installments without penalty.
Tax notices will be mailed on May 24. Approximately 6,500 households have chosen to receive their notices electronically, and the remaining notices will be distributed by mail.
Property owners who wish to contact the City regarding their tax bill can email [email protected] or call 403-342-8126.
More information on the tax program is available on the City’s website at www.reddeer.ca/tax.