The Alberta budget comes with an income tax cut on one hand, but on the other, a tax hike that Mayor Jyoti Gondek notes will hit Calgarians harder.
She’s talking about the education property tax.
In a couple of months, you’ll get a bill on city letterhead for your property tax, but in reality about 30 per cent of that is going straight to the province and is set by the province.
This year, it’s set much higher.
The province says property taxes for the average Calgarian will go up by $239 a year.
It’s a bigger increase than city council set for its portion of tax in its current budget.
It’s the first time ever the province has extracted over a billion dollars from Calgarians in property tax.
Edmontonians will only pay $92 more this year.
Gondek says that money doesn’t all come back to Calgary, and she compares it to the province’s argument about equalization funds, saying Calgarians are being treated unfairly.
“We can’t stop the collection of the education tax because we are mandated to do so under legislation,” Gondek said.
“I would much prefer that the province collect their own taxes.
“I would prefer not to be the middle agent that is collecting taxes for them.”
On another note, the mayor said the city was very worried about low-income transit pass funding.
In its budget, the province kept that at the same level as last year, but Gondek says with Calgary’s rapid population growth and predicted higher unemployment this year, there is and will be an increased demand, and that funding shortfall will fall on the city.
