(File photo/paNOW Staff)

By Charlene Tebbutt

city taxes

City council raises minimum tax, approves 3.9 per cent mill rate increase

May 7, 2019 | 8:09 AM

Prince Albert city council is raising the minimum property tax in the city after approving an increase at a special city council meeting Monday night.

City councillors voted to raise the minimum tax from $476 to $576. The increase will be applied to about 571 properties that pay the minimum tax rate, 114 of which are vacant lots with the others being smaller residential lots or pieces of land.

The minimum tax covers only a portion of the approximately $1,800 annual cost for policing and fire services per property in the city, and Ward 6 Coun. Blake Edwards argued the amount is still too low. Edwards said too many owners of rental properties aren’t taking good care of them to avoid increases in taxes.

Edwards introduced the motion to raise the minimum tax at council’s regular meeting last week and said he would like to see it go up to around $1,000.

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“I think the minimum tax has been low for a lot of years,” Edwards said Monday. “It’s one of the tools a city can use and I don’t think we’ve utilized it properly … I certainly believe we need to look at it further and have more increases.”

The minimum tax does not include city services such as snow removal, paving or library services, which are paid through separate taxes. Several other councillors agreed with Edwards’ motion to raise the minimum tax, saying properties owned by out-of-town landlords still use local resources.

“We’re looking for the sweet spot between the mill rate and the minimum tax,” Ward 8 Coun. Ted Zurakowski said. “We are all benefitting from it, we should all share the burden.”

Ward 1 Coun. Charlene Miller said she wouldn’t support the increase because not enough is being done to manage vacant and derelict properties in her ward. Miller said she counts 22 vacant or boarded-up homes in her ward alone.

Mayor Greg Dionne said that issue can be rectified by taxing rental properties as businesses. He suggested more discussion on the issue should happen down the road, including who can make decisions about local improvements such as paving.

As it stands now, property owners have more influence on whether their street should be paved, even if they live out of town, instead of renters, Dionne said.

“If you guys are concerned these rental properties aren’t paying their share, then charge them more,” he said.

The last time the minimum tax was raised was two years ago. City council also approved the 3.9 per cent mill rate increase for 2019 at Monday’s council meeting.

City Finance Director Cheryl Tkachuk said she doesn’t expect property owners to see too much of a difference with the increase. The mill rate increase amounts to a tax hike of about 2.2 per cent per taxpayer.

“The 3.9 per cent, even though it sounds large, it is fairly reasonable, I believe, for most residents, so I’m hoping that a lot of residents won’t see a huge impact on their taxation notices,” she said.

Tax notices will be sent out to residents in the coming weeks.

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charlene.tebbutt@jpbg.ca

On Twitter: @CharleneTebbutt