Morinville residents may be out 13 dozen doughnuts when it comes time to pay their tax and utility bills this year.
Town council approved first reading of the 2020 property tax bylaw on April 14.
Council’s 2020 budget featured a two-per-cent residential tax hike based on two per cent growth in property values. It turns out the town saw just 1.4 per cent growth, so the municipal tax rate will have to rise by 2.6 per cent to compensate, town corporate services director Shawna Jason told council. She suggested that council assume zero per cent growth when writing next year’s budget.
The budget also assumed the education tax would stay flat. While it has, as the province has cancelled this year’s planned increase, the town had learned that it undercharged for the school tax in 2019 as it had to pass its 2019 tax law before the province set the school tax rate that year. Under provincial law, the town now has to make up the $18,707 shortfall this year.
The budget also assumed a two-per-cent hike in the Homeland Housing requisition. The actual increase was closer to 1.4 per cent, Jason said in an interview.
The owner of a typical $332,696 residential property can expect to pay about $2,499 in municipal taxes this year, or $64.14 more than last year. Their school taxes will rise by $1.51, but their Homeland Housing taxes will fall by $0.13.
Add in utilities, and the average homeowner will have to pay $139.62 more in taxes and fees this year – equivalent to about 13 dozen Tim Hortons doughnuts.
The tax law returns for second reading April 28.
