Calgary residents will face higher property taxes in 2022 as a result of a nearly 4% tax increase approved by city council to help support downtown renewal, climate action, and the fire service.
As part of modifications to the city’s 2022 Budget, which passed on an 11-4 vote, council approved a municipal property tax rate increase of 3.87 percent for a homeowner with a single-detached home with a median market value.
For the average residential home, the property tax increase amounts to roughly $6.20 each month, or $74.40 per year.
This comes as the city council also increased funds for climate change and affordable housing, increased funding for snow and ice control in the city, and increased cash for downtown, arts and culture, public safety, highways, and climate action.
“As a council, we passed a budget that provides a path forward building on Calgary’s strengths while addressing challenges from the compounding crises we have faced as a city in recent years,” said Mayor Jyoti Gondek. “The investments we are making will pay real dividends on our road to recovery. Calgarians deserve a return on their investment in their city, and today, we have delivered on that.”
$3 million will be spent on Calgary’s climate strategy, which will involve the hire of 18 new personnel to implement the city’s climate mitigation and adaptation measures, as well as additional funds to replace more than 75 city cars with electric ones. This announcement comes only weeks after Calgary declared a state of emergency due to climate change.
The council also approved a $10 million increase in affordable housing financing to match federal housing dollars for the construction of 125 new houses.
In 2022, particular user costs will be frozen or reduced, including the blue, black, and green cart rates, as well as the building safety and development approval base prices.
“Demand for our services remains high, our population is growing, and inflation is rising,” said Carla Male, Chief Financial Officer. “We continue to manage these factors while working hard to support citizens and businesses in a fiscally sustainable manner.”
The impact of the tax rate will vary by property type, depending on the assessed value of a home or company, as well as the provincial tax rate for the following year, which will be decided in the first half of 2022, according to the city.
As portions of Canada continue to face the effects of global warming, it will be fascinating to see if other cities follow Calgary’s lead and levy climate change as a municipal property tax.