by Colin Smith
Municipal taxes will increase five per cent for residential property owners and 15 per cent for non-residential property owners under the 2019 Property Tax Bylaw given first reading by Morinville Town Council at its April 9 regular meeting.
That’s up from the four per cent rise foreseen in the 2019 municipal budget passed in December as needed to meet Morinville’s operating revenue requirements of just under $10 million.
The increase is the result of less than expected real estate value growth in 2019 and diminished assessments.
Owners of a home assessed at $300,000 in 2019, will pay about $104.59 more per year in municipal taxes.
Along with $9,998,847 for Morinville’s operating budget, property owners are also responsible for the education property tax requisition under the School Act, the Homeland Housing requisition and a sum for Designated Industrial Property.
The amount to be raised by property taxes for these purposes totals $13,706,864.68. Total 2019 taxes for an average residential assessment of $300,000 will be $3,000.94 compared to $2,884.21 last year, an overall increase of $116.73.
Increases for non-residential commercial property will range from two per cent to 26 per cent, with an average rise of 13 per cent or $1,600 per year.
According to Morinville Administration figures, real growth for all residential property in the town was 1.35 per cent last year and assessments have decreased by 2.32 per cent.
Assessments on improved commercial accounts have increased on average approximately 15 per cent with improved industrial accounts increasing on average approximately seven per cent over the previous year.
The 2019 Property Tax Bylaw will come back to Council for second and third reading at its April 23 meeting.
In developing the tax bylaw the Administration reviews assessment information on properties located in Morinville that are assessable for taxation. These include residential and non-residential properties, machinery and equipment, linear properties, farmland and properties for which grants in lieu of taxes are received.
As of December 31, 2018, the assessed value was $1,313,081,700 for 4,003 properties.
Assessment changes come as a result of market adjustments offset by real property assessment growth, including new properties and real improvements to these properties.
In 2018 real growth for all taxable property, was $40,057,940 – about 1.2 per cent compared to 2.6 per cent in 2017 – and market adjustments decreased by $5,756,280 or 0.4 per cent.