Leduc County council approves 2014 budget, sets tax rates

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

May 16, 2014 – Leduc County council unanimously approved the final 2014 budget and 2014 Tax Rate bylaw, which sets the 2014 tax rates, at the special council meeting held this morning.

“In preparation for the final 2014 budget, council advised administration not to exceed a 3.00-per-cent increase to the 2014 municipal budget. We are pleased to report that the final budget increase came in at 3.00 per cent, which is within the limit approved by council in the interim budget,” says Allan Krasowski, deputy county manager. “Council approved an $80.292 million operating budget and $65.058 million capital budget.”

Residential property taxes are primarily comprised of two components: municipal taxes (56.75 per cent of total) and education taxes (43.25 per cent of total). The budget increase of 3.00 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 $735,100 or 4.08 per cent, for Leduc County over 2013. The county has no control over this and is obligated to collect this increased amount as property taxes.

The county’s total assessment for 2014 was $7.129 billion, which represents an increase of 8.65 per cent over 2013.

“The increase is a result of growth, representing 3.50 per cent for things like new construction or developments. Market adjustments represent 4.80 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.

Tax Rates (includes education):                    2014                            2013 (provided for comparison)

Residential                                                      0.00578                       0.00584

Farmland                                                         0.01480                       0.01448

Non-residential                                               0.01054                       0.01102

Machinery and equipment                              0.00717                       0.00739

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 $2,756 (residential: $2,312 + farmland: $444).

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 2014 reflects market value as of July 1, 2013, 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 2014.  Taxes are due by June 30, 2014.

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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