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Property Taxes Reimagined

Property taxes help pay for the local services we rely on every day, like roads, fire protection, recreation spaces, water systems, and more. Alberta Municipalities created “Property Taxes Reimagined” to explain why costs are rising and why communities are asking for fair, sustainable funding.

Overview

Across Alberta, municipalities are facing rising costs from inflation, increased responsibilities, and changes in funding from other levels of government. Alberta Municipalities notes that municipal budgets are under pressure, and local governments have limited ways to raise money, largely through property taxes and service fees.

What the project is

A public education resource that explains how municipal budgets work and what is driving cost pressures across Alberta communities.

Why it matters locally

Essential services and infrastructure require long-term planning and stable funding, including for smaller communities and seasonal populations.

Where Do Your Taxes Go?

Alberta Municipalities explains that Canada has three levels of government and each funds different services. Municipalities generally rely on property taxes, fees for services, and user fees, with restrictions on creating new taxes, borrowing beyond limits, and the requirement to balance budgets.

What municipalities typically use to fund local services
  • Property taxes
  • Fees for services like water, wastewater, waste collection, and recycling
  • User fees for programs and facilities
Why comparing communities can be tricky

Alberta Municipalities notes that communities can have different service levels, different user fees, and different numbers of businesses helping share costs.

For the full explainer and supporting materials, visit Property Taxes Reimagined.

Why Costs Can Increase

Alberta Municipalities highlights several factors that can contribute to higher municipal costs, including inflation, new responsibilities, and funding changes. When available transfers or grants are not enough, municipalities may need to reduce services or raise revenue, often through property taxes or fees.

Inflation and rising costs

The resource points to rising costs for equipment, wages, and construction, which can affect local budgets.

Funding and transfers

Alberta Municipalities notes that over time, changes in provincial funding levels can increase pressure on local budgets when municipalities still need to maintain core services and infrastructure.

Provincial portion of the property tax bill

The resource explains that a portion of the property tax bill is provincial, often referred to as the education property tax, and municipal councils do not control that provincial rate.

What Residents Can Do

Staying informed helps residents understand how local services are funded and what choices municipalities face when costs rise. If you want to learn more or share feedback, Alberta Municipalities encourages residents to reach out to their elected representatives.

  • Review the explainer to understand what drives municipal costs and budgets
  • Ask questions about local infrastructure priorities and long-term planning
  • Share your thoughts with local council and your MLA

Learn More

Alberta Municipalities provides additional background papers and videos as part of the project, including explainers on how taxes are structured and how municipal funding pressures add up.


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