Cranbrook council adopts 2021 Tax Rates Bylaw
City of Cranbrook residential class taxpayers will be facing taxation increases of about 2.35% this year after city council May 10 adopted the Cranbrook 2021 Tax Rates Bylaw.
“The tax rates proposed by this Bylaw will raise the $29,374,520 in general municipal property taxes required by the City of Cranbrook 2021-2025 Five Year Financial Plan. The 2021 tax levy represents an increase of $665,265 over 2020,” noted a report to council by city finance director Charlotte Osborne.
Council April 26 directed city staff to bring back a tax rate bylaw with a general municipal tax levy distribution of roughly 62% residential class and 35% business class with a general municipal tax increase to the residential class of 2.35%.
Osborne reported the 2021 residential class average assessed value in the city increased 5.548%.
“This increase is not representative of all the properties within the class. Some neighbourhoods have seen their assessed values rise while the assessed values of other properties have declined. Upgrades as well as repairs and maintenance done to a property may increase its value above similar neighbouring properties. Location and overall neighbourhood improvements can also affect values. Based on the average increase, a residential property assessed at $300,000 in 2020 would have an assessed value of approximately $316,644 in 2021,” she stated.
“The general municipal property tax increase (excludes school and other non-city property taxes) for a residential property in 2021 will be approximately 2.35% unless the property’s assessed value increased or decreased by more than the average increase of 5.548% for the class. The calculations are based on gross property taxes before the Provincial Home Owner Grant and do not include parcel taxes, local service area tax or city utilities.”
The 2021 business class average assessed value increased 1.307%.
“As is the case with residential properties, the average increase is not representative of all the properties within the class. Based on the average increase, a business class property assessed at $500,000 in 2020 would have an assessed value of approximately $506,533 in 2021,” the city report noted.
The business class tax increase will on average 1.1% for 2021.