Property taxes in Nanton are going up, but it's not completely the Town's doing.
Nanton residents are going to be receiving a 6.3 per cent tax increase this year, which works out to be about $206 for an average household priced at $360,000.
Typically, though, property tax increases in Nanton are around 2 per cent.
So, why is there such a big property tax increase this year?
According to Nanton Mayor, Jennifer Handley, a large portion of the property taxes collected won't be going to the town, but to the Provincial government instead.
"For the last couple of months, we've been working on our Operational Budget, which is the budget that establishes the property tax amount," Mayor Handley explains. "Council has always been really diligent in our spending and making sure that we still are responsible with putting money in reserves and maintaining our infrastructure. So, with that in mind, we had budgeted about a 2.2 per cent increase this year in property taxes. Which is the equivalent of $56 for the average household."
The remaining 4.1 per cent of the tax increase is caused by the Provincial government.
"Once the budget was released by the Provincial government at the end of February, that is when we were told that our Education Requisition would be increased by 4.1 per cent for the average property tax holder here in Nanton. Which is the equivalent of $150 this year."
The province's education requisition provides the education system with a source of revenue, and the amount they are collecting from municipalities has grown by 21 per cent this year, which is what caused the increase in 4.1 per cent property tax increase.
Mayor Handley says she has talked to other municipal leaders across the province and found the education requisition was increased by roughly 18 per cent on average.
"This is a monumental impact for property taxpayers, and we find that it is quite disingenuous in a sense that the ones we're that ultimately who have to carry the heavy lifting when people put up those property tax bills in June. They'll only go to look at the bottom line, many will not recognize that at least 30 per cent of their property taxes are going to the provincial government. And so, in our minds, I think enough is enough."
She says it's not just the education tax, but also the police tax that's been incorporated into property taxes, and more.
"We view these as somewhat hidden taxes that are under the letterhead of the Town of Nanton. And so, I do think it's time, in an effort for transparency, that I challenge the province to start sending their own property tax bills to residents rather than hiding under the municipal property tax bills."
Mayor Handley adds that this seems to have been a pattern over the past ten years.
"We're mandated to be fiscally responsible and to be hyper-aware of our budgets for three years and it just doesn't seem like it goes both ways. There doesn't seem to be that awareness of the day-to-day ratepayer in municipalities. And it's just not ok anymore."
The provincial government said the education requisition increase is due to the population growth in the province, as well as initial investment in education, and Minister McIver had stated that a third of the education cost should come through property tax requisition.
"But to have this drastic of an increase is not sustainable, especially in small towns where property taxes are typically higher than larger centers, because less people are contributing to major infrastructure. This is a major hit to rural Alberta."
Mayor Handley took to Facebook on March 19 to let people know about the property tax increase, prior to the tax bills being sent out, so residents know where to direct their frustrations.
"We're the ones that are going to bump into residents at the post office and grocery store, and it's quite easy for our MLAs and provincial government sit up in Edmonton and be removed from the impacts and from the rhetoric in our community. They're not going to feel it the same way we do."
She added that this increase is out of touch and inexplainable, especially because the provincial government had cut income tax, so Mayor Handley explains this feels they had moved the goal post and simply slipped the tax back in under a different name.
Due to the tax increase caused by the provincial government, Mayor Handley is encouraging frustrated Nanton residents to reach out to their MLA or the Minister of Finance to express their frustrations with them.
"And again, I really encourage the provincial government to focus on their own transparency and issue their own property tax bills. And for that matter, we will still collect that money and send it to Edmonton, but I do think it needs to be two separate mailouts so that the average property resident understands what's going where."