Understanding the tax levy
As you know the past year has been a difficult year for everyone. The impacts of the pandemic have hit residents, businesses, and the municipality. The Town of Crossfield would like to provide additional information so that it provides more clarity in explaining the 2021 tax levy increases as follows:
- Municipalities are only responsible for the Municipal portion of the tax levy. The Rocky View Foundation Seniors (RVF) and the Alberta School Foundation Fund (ASFF) send requisitions to the municipalities for their portion of the tax levy. The combination of the three levies (municipal, RVF, ASFF) makes up the billed tax levy.
- Municipal Sustainability Initiative (MSI) from the provincial government is a main source of funding to municipalities. There is a 25 per cent funding reduction over three years: 2021-2022, 2022-2023 and 2023-2024.
- Municipal Sustainability Initiative (MSI) grants (2019 partial and 2020) were not applied for and, therefore, timing of receipt of funds was uncertain.
- Federal Gas Tax Fund grants (2017 to 2020) were not applied for and, therefore, timing of receipt of funds was uncertain.
- Municipal revenue streams declined in 2020; however, expenditures did not decline. Utilities declined $162,602; Arena declined $92,865; Hall declined $30,716; Property Taxes Outstanding increased $129,315.
- Residential tax levies increased 6.19 per cent in 2019, declined .04 per cent in 2020 and increased 9.4 per cent in 2021.
- Non-residential tax levies remained flat in 2019 and 2020 and decreased 5.12 per cent in 2021.
- Recently it has been discovered that the 60-day holding pond has reached capacity. This caused an unknown expenditure item at time of budget.
- The municipality will continue to apply for grants and leverage resources as much as possible. Until grant monies are received, budgeting for a project is at the gross cost.
- Town of Crossfield municipal taxes are calculated from January to December of each year.
The Town of Crossfield Budget Expenditures for 2021:
Tax Levy Calculation & 2021 Expenditures
The Town of Crossfield is aligned with the Municipal Government Act 297.1 with four property classes:
- Materials and Equipment
Assigning assessment classes to property:
297(1) When preparing an assessment of property, the assessor must assign one or more of the following assessment classes to the property: (a) class 1 - residential; (b) class 2 - non-residential; (c) class 3 - farm land; (d) class 4 - machinery and equipment.
Municipal Revenues less Municipal Expenditures = Municipal Taxes to be Raised
The Town sets the mill rate based on the formula, and multiplies the calculated rate against the assessed value of the property. The requisitions received by the Town for the Rocky View Foundation Seniors and the Alberta School Foundation Fund are added to the municipal taxes to calculate the total tax levies.
Impact of 2021 levy on residential property taxes
- The increase in taxes on a $200,000 residential home is $146.47 or $12.21 per month.
- The increase in taxes on a $250,000 residential home is $183.21 or $15.27 per month.
- The increase in taxes on a $300,000 residential home is $219.85 or $18.32 per month.
- The increase in taxes on a $350,000 residential home is $246.49 or $21.37 per month.
Tax amounts are based on the assessed value of your property and the tax mill rate. The Taxation Bylaw is approved by Town council each year, based on budget requirements for the current year.
2021 Tax Mill Rates
Machine & Equipment
NOTE: The residential and non-residential mill rates include the education tax, set by the province each year.
Use the tax calculator to estimate your yearly property taxes.