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Coaldale debating 0% property tax hike, continues special levy for rec centre

Apr 27, 2021 | 2:31 PM

COALDALE, AB – The Town of Coaldale is working on three separate items related to property taxes.

At Monday’s council meeting, members approved continuing the Special Recreation Tax Levy for one more year. Due to the nature of the levy, it has to be re-introduced every year.

Mayor Kim Craig explains that, for the last three years, a tax of $120 has been imposed on each developed residential partial in town with all money going towards paying off the new multi-use recreation centre.

For the $13 million project, $10 million will come from the town while the remaining $3 million is covered by provincial funding. The special levy is meant to pay off the $10 million portion.

“Once the debenture’s all paid off for the rec centre, then the levy disappears, instead of, you know how Canada introduced personal income taxes many many years [ago] and they were supposed to go away after the war efforts were all paid for, but guess what, we still have those today.”

It is unclear how much longer the special levy will need to be used.

Craig said it could theoretically remain in effect for the entirety of the facility’s amortization period, but council will try to fundraise for the building, and depending on how successful that is, the tax could be eliminated sooner than that.

Council also gave first reading to the 2021 Property Tax Bylaw.

If approved, both residential and non-residential property owners would see a zero per cent increase for the 2021 year.

“Especially during the time of the global pandemic, we don’t want to create more stress to the residents and business owners by cavalierly adding one or two or three or four per cent taxes every year.”

Craig says the last motion regarding property taxes discussed in Coaldale this week was around penalties.

“We have a bit of leniency in case the odd person or business might not be able to come up with the money at the June 30 deadline and not assess any penalty until October 1.

Tax notices are expected to be sent out in May.