During a regular council meeting on May 28, the city of Cold Lake council unanimously voted to set the 2024 municipal tax rates, resulting in an average municipal property tax increase of 4.98 percent.
For 2024, the residential tax rate has been set at 8.3635, down from 8.4948 in 2023. The multi-family residential tax rate is also set at 8.3635, a decrease from 9.0819. However, the non-residential tax rate has increased to 13.5079, up from 13.1707 in 2023. Properties that fall into the new vacant subclasses will be taxed at rates 10 percent higher than their non-vacant counterparts, with vacant residential properties set at 9.1999 and vacant non-residential properties set at 14.8587. Properties are considered vacant if they have been subdivided, can be readily serviced, but have remained undeveloped for seven years or more.
To encourage development, the city has implemented an incentive program where properties in the vacant tax subclass can be rebated the difference between the amount generated by the vacant versus the non-vacant subclass, plus an additional five percent if they are put up for sale.
These new tax rates are expected to generate approximately $23.45 million from properties within the city, balancing the city’s $58.01 million operational budget. This budget includes a transfer to the capital budget of roughly $6.74 million. In comparison, the city collected $22.19 million in taxes in 2023 to balance its budget.
“Inflation remains a factor in our budget deliberations, but we are trying to pass as little as possible of the inflationary pressure we are seeing to residents,” Mayor Craig Copeland said. “Our budget continues our major infrastructure projects without making any drastic changes to services. We are holding the line while doing what we can to prepare for growth as major projects in our region begin to ramp up.”
The tax rate set by the city council is applied per $1,000 of property value to determine the amount of taxes a property pays for municipal services. Taxes are based on a property’s assessed value, meaning a tax rate increase, or decrease does not necessarily equate to an increase or decrease in the amount of municipal tax a property owner will pay compared to previous years. The impact will vary depending on the change in assessment and tax rate for each property.
The city’s total taxable assessment increased by $140.4 million compared to 2023, representing the largest increase in assessment since 2014. This includes $27.3 million from new construction and $113.2 million due to inflation.
Tax notices were sent out by Friday, May 31, with a payment deadline of June 30, 2024.
For more information on the city’s capital and operational budgets, visit www.coldlake.com. Information regarding past tax rates and the municipal property taxes collected can be found in the city’s annual report also available online.
