Leduc County council approves 2013 budget, sets tax rates

Municipal budget increases 3.5 per cent within the guidelines outlined by council

May 23, 2013 – Leduc County council unanimously approved the final 2013 budget and 2013 Tax Rate bylaw, which sets the 2013 tax rates, at the special council meeting held this afternoon.

“In preparation for the final 2013 budget, council advised administration not to exceed a 3.87-per-cent increase to the 2013 municipal budget. We are happy to report that the final budget increase came in at just 3.5 per cent, which is within the limit approved by council in the interim budget,” says Allan Krasowski, deputy county manager. “Council approved an $81.649 million operating budget and $59.996 million capital budget.”

Residential property taxes are primarily comprised of two components: municipal taxes (56.85 per cent of total) and education taxes (43.15 per cent of total). The budget increase of 3.5 per cent is for county operations only and does not reflect the education tax increase, which is determined by the Government of Alberta. Education taxes, known as the Alberta School Foundation Fund, increased by $1.759 million or 10.82 per cent, for Leduc County over 2012. The county has no control over this and is obligated to collect this increased amount as property taxes.

The county’s total assessment for 2013 was $6.565 billion, which represents an increase of seven per cent over 2012.

“The increase is a result of growth, representing 3.61 per cent for things like new construction or developments, and market adjustments, representing 3.4 per cent which reflects market changes such as inflation or changes in construction costs,” says Rob Ballhorn, director of assessment.

Ballhorn says Leduc County still has some of the lowest tax rates in the capital region, despite the tax rate increases.

Tax Rates (includes education):                    2013                            2012 (provided for comparison)

Residential                                                      0.00584                       0.00563

Farmland                                                         0.01448                       0.01411

Non-residential                                               0.01102                       0.01108

Machinery and equipment                              0.00739                       0.00748

As noted above, Leduc County has different tax rates for different types of properties. To determine your property taxes for the year, multiply your assessment value by the appropriate tax rate.*

Example: A property including a residence (with an assessed value of $400,000) on farmland (with an assessed value of $30,000) would receive a tax notice for $2,770.40 (residential: $2,336 + farmland: $434.40).

Note: Multiple tax rates may apply, depending on what type of property you own. For a property with multiple assessments, you would add all applicable taxes on your property to get your total taxes owing for the year.

Residents may still experience changes in their tax notice due to adjustments in market value assessments and the tax rate. Individual property tax notices may increase or decrease depending on market value changes specific to each property. Since the property assessment for 2013 reflects market value as of July 1, 2012, the assessed value may be lower or higher than today’s current market value on some properties.

Tax notices will be mailed to residents no later than the last week of May 2013.  Taxes are due by June 30, 2013.

Leduc County offers a variety of payment options to residents, which are detailed on the back of the tax notice. For more information on your property assessment or your taxes, please contact Leduc County Centre at 780-955-3555 or toll-free at 1-800-379-9052.

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