Real Estate

Calgary hiking property taxes by 7.5% for 2020, braces for higher hike in 2021

  • Last Updated:
  • Dec 3rd, 2019 11:32 am
[OP]
Deal Addict
Dec 20, 2018
4667 posts
3733 upvotes

Calgary hiking property taxes by 7.5% for 2020, braces for higher hike in 2021

After a normal 3% hike in 2019, it's going up by 7.5% for homeowners in 2020

https://calgaryherald.com/news/local-ne ... se-in-2020

council approved a strategy to use one-time funding of $24 million to buy the city time to find further budget reductions over the next two years.

The proposal from councillors Jyoti Gondek and Diane Colley-Urquhart requires that the city find $24 million in savings in 2021 with the help of an outside consultant, and a further $50 million in cuts in 2022.

If the bid to find savings fails, council will be forced to hike taxes even more in 2021.
17 replies
Deal Addict
Dec 4, 2016
1872 posts
892 upvotes
Well, not a good day for RE investors in Calgary. Market rents are probably stagnant or dropping, while expenses seem to keep going up. Even as a RE bull, I have to acknowledge that RE is not guaranteed road to riches.
Deal Fanatic
Oct 7, 2007
8066 posts
4047 upvotes
I think the voters need to remind who works for whom. Somehow Canadian cities are taking a page out of the playbooks of our neighbouring cities to the south (and arguably west like Vancouver) and raising taxes like there is no tomorrow with absolutely zero accountability. One big difference, however, is that down south, a lot of people can actually write off their taxes against their income whereas this is not the case here in Canada. I am not advocating for writing off our taxes here in Canada because I think that will lead to even higher taxes and even lesser accountability. What I am advocating for is some fiscal responsibility and the addition of the word "no" to the vocabulary. Sure, who doesn't want to go on a spending spree? But there is a cost to spending and it is unfair to make the taxpayers pay for things that are wants if they are over and above the budget of providing the basic functions cities are designed to provide in the first place.
Deal Addict
User avatar
Nov 1, 2001
1055 posts
387 upvotes
Toronto
Let's start cutting costs at city Hall. I see a lot of redundancy. One person takes payment, one person. Does paperwork.too many cushy jobs
Member
User avatar
Oct 31, 2019
421 posts
537 upvotes
Is this to counter declining tax revenues from lower appraised values? I recall reading an article in the globe and mail earlier this year about how Calgary's office towers are appraised at less than half of what they were a few years ago so tax revenue from them was expected to fall precipitously. Not sure if this is trying to counter the shortfall or if they tried other strategies.

Very different to the situation in Toronto and Montreal.
Deal Addict
User avatar
Dec 13, 2016
3694 posts
3190 upvotes
Wow. This is going to bring Calgary real estate to its knees. I guess the province had to raise money somehow, but the better idea instead of punishing homeowners would be to implement sales tax.
Deal Fanatic
User avatar
Sep 8, 2007
8942 posts
10121 upvotes
Way Out of GTA
VanByTheRiver wrote: Is this to counter declining tax revenues from lower appraised values? I recall reading an article in the globe and mail earlier this year about how Calgary's office towers are appraised at less than half of what they were a few years ago so tax revenue from them was expected to fall precipitously. Not sure if this is trying to counter the shortfall or if they tried other strategies.

Very different to the situation in Toronto and Montreal.
Doesn't work like that regarding lower appraised values. The total $ revenue is divided by the aggregate assessed mkt values to come up with a mill rate in simple terms.

But it simply means everyone would pay a higher % rate on their assessed value - if assuming it fell values fell across the board.

The city vultures get their money no matter what.
Sr. Member
Nov 10, 2014
523 posts
858 upvotes
Ottawa, ON
Does anyone know of good sources of information and discussion regarding Calgary/ Alberta RE market? RFD seems very GTA/ Ontario specific, Vancouver being the exception.
Deal Addict
User avatar
Dec 13, 2016
3694 posts
3190 upvotes
Tadalafil wrote: Does anyone know of good sources of information and discussion regarding Calgary/ Alberta RE market? RFD seems very GTA/ Ontario specific, Vancouver being the exception.
There is some hockey forum site where real estate agents used to be (and probably still are) members. You could ask them sold prices on any property and they'd answer.

Forgot the name :)
Jr. Member
Mar 29, 2016
155 posts
118 upvotes
Toronto
https://www.vice.com/en_ca/article/j5zz ... se-in-2019

Calgary

Average 2019 rent increase expected: 4 percent

Like Edmonton, Calgary has thousands on the waitlist for affordable housing. And, like Edmonton, Calgary’s economy and its housing market, is linked to the oil market. But unlike Edmonton, the rental market is tightening up in Calgary, where apartment rental rates have been rising after declining for two years in a row. Alberta does not have rent control.
Deal Guru
Feb 29, 2008
13847 posts
10086 upvotes
I think we’re going to see this everywhere. Canadians have proven that they have no issue paying higher taxes for anything and refuse to hold their government accountable.
Deal Addict
Jan 9, 2010
2029 posts
1418 upvotes
JayLove06 wrote: I think we’re going to see this everywhere. Canadians have proven that they have no issue paying higher taxes for anything and refuse to hold their government accountable.
Sunny ways.
Jr. Member
Apr 25, 2019
187 posts
208 upvotes
Ontario
The ReMax 2020 vision for Calgary is more first-time home buyers entering the market.

“The Calgary housing market will lean toward buyers in 2020 with a zero percent residential sale price expectation,” says ReMax. “This is dependent on a number of different factors, including the province’s economy and the fate of the Trans Mountain Pipeline. The city’s employment rate and overall economy will have the greatest impact on the housing market, along with strong population growth.

https://calgarysun.com/life/homes/remax ... ing-market
Deal Fanatic
Oct 7, 2007
8066 posts
4047 upvotes
VanByTheRiver wrote: Is this to counter declining tax revenues from lower appraised values? I recall reading an article in the globe and mail earlier this year about how Calgary's office towers are appraised at less than half of what they were a few years ago so tax revenue from them was expected to fall precipitously. Not sure if this is trying to counter the shortfall or if they tried other strategies.

Very different to the situation in Toronto and Montreal.
Actually, this phenomenon of excessive property tax increases year after year is happening in many large cities across the United States and has been happening in Vancouver for quite some time. Now that it is happening in Calgary, I wouldn't be surprised to see it happening in all major urban centres across Canada sooner or later. And the politicians who think we voted for them feel totally entitled to raise taxes for any purpose they decide. Now that so much of our population is concentrated in the cities, everyone whether a renter or a homeowner, is going to be affected by these increases.

Top