Municipal Concerns Over Alberta's Education Property Tax Increase

Edmonton·New

The organization that represents cities, towns, and villages across Alberta has voiced strong concerns regarding the recent increase in education property tax as announced in the provincial budget last Thursday.

Plans to Raise Taxes for Education Funding

The education property tax currently makes up 29% of the operating budget for education. The provincial government aims to increase this figure to 31.5% in fiscal year 2025 and up to 33% in fiscal year 2026. The overall tax revenue is expected to reach $9.9 billion by 2025, which includes an estimated $3.1 billion from the education tax, with projections for this amount to rise to $3.4 billion and $3.6 billion over the following two years.

Tyler Gandam, president of Alberta Municipalities, expressed that this tax increase shifts the burden onto property taxes when there are more efficient and transparent revenue generation options available to the province. He noted, "Property taxes are the main revenue source for municipalities, which are already managing escalating costs and demands."

He also mentioned that municipalities would prefer the province handle the collection of education taxes entirely rather than passing the responsibility onto local governments. Gandam was taken aback by what he referred to as a significant rate increase.

Impact on Residents

The planned adjustments mean that residents in Edmonton can expect to see an increase of approximately $93 this year, while those in Calgary may face an increase of $239, which is more than double that of Edmonton's hike.

During a news briefing, Premier Danielle Smith defended the tax hike, asserting that more contributions are necessary for the construction of new schools. She highlighted that substantial investments are being made to develop new educational facilities, with $2.6 billion allocated over three years for building and modernizing schools.

Smith emphasized the importance of asking residents in Edmonton and Calgary—the cities that will benefit most from new schools—to help fund these initiatives. She noted, "We need to create around 100 new schools in the next six or seven years, and having some support from the communities is essential to this plan."

Calgary's Mayor, Jyoti Gondek, echoed Gandam’s concerns, stating that while cities are mandated to collect education taxes, it would be preferable for them not to be caught in the middle of this process. She added, "Issuing two separate tax bills—one for the province and another for the municipality—just adds to the costs for taxpayers, and we can't justify that expense."

After freezing education taxes the previous year, the new tax rates are set to be $2.72 for every $1,000 of assessed value for homes and farms, and $4.00 for commercial properties. While members of the legislature will be on a constituency break next week, they plan to review the budget when they reconvene on March 10.

education, tax, Alberta