Quote:
Originally Posted by GGG
WTF
I was just pointing out that the city budget and property tax is independant of the absolute value of property. The property value of every house in the city could be cut in half and the amount you pay in tax would be unchanged. So a lock of increasing property value does not inhibit the ability of the city to increase taxes.
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I've thought long and hard about this. I don't think my post warrants a WTF.
The value of property and property assessment is part of the equation. It's simply mathematical. However, this story that the city has spun that it doesn't effect the taxes we collect on the whole also doesn't add up. It has never been revenue neutral and I hate that term. It means while you may pay more other people pay less. The very theory is that your property value is irrelevant because we will tax you anyways.. The government is not revenue neutral. I wish they would start using terms like using your revenue as smart as we can.
1) If your property goes up. You can count on paying more of your share of taxes. The principle mechanics of the system. Property value is a way of assigning fair share. If you buy a place in Mount Royal, expect to pay more.
2) The mill rate has gone up very statistically and permanently in the city of Calgary.
2.1) Property * mill rate = taxation bill.
3) I've had conflict on multiple properties with city assessors. This department is brutal and they know their job is to challenge and maximize property value.
- The ARB (assessment review board) used to keep them in check, but now you have to spend a full day to hear your docket. You used to have a set time. I hang out here in June, but they've literally made it super costly and expensive cutting out the function of the ARB board.
- The City is putting together 500 page documents to argue their case for your property valuation. In other words they are using tax revenue to fight you to pin their property values to the max.
- Big corporations fight back and often win where local property owners are unable. Big corporations fight the system and win because the city is pinning down the easy targets. Now the city fights the resident/citizen like they do with a big corporation.
- Why would they be so concerned about property valuation if they just adjust mill rate accordingly. From the cities perspective. You should spend a day down at the ARB to see the stuff the City tries to get away with. Actually listening to citizens whose property jumps 20% to 30% in a single year.
- They want to value your property at market/but value you as the average of the street. They want it both ways, and will not acknowledge the value of homes on your street and pick the highest examples blocks away and even coded in their own system differently. Take six, eight, ten homes on my street and value the home. That's it. It's the MGA. Take every home valuation on your street and divide. The city is not engaged in this activity.
4) New properties to be taxed do not lower the tax burden, only contribute. Ie. More taxation base. As it should be. As we add new "property value" wouldn't the taxation rate decrease?
5) When you focus on property valuation you can really lower the idea of "mill rate" increase. Instead of saying we are increasing 10% you've posted extreme assessment of property and you say we are at 5% increase. Citizens smile and pay $200 more a year every year to city hall. 10 years of this and you have a very tax heavy city which doesn't encourage opportunity or people to live in.
6) Old people living in the inner city are really hard hit. I will never forget all the people down at the ARB fighting not to be forced out of their home like the Lougheed's at one point.
The only WTF is what is happening down on the whole floor dedicated to people trying to maximize property value and not listening to the citizens who call up to say why has my property value gone up 15% in a year. They used to be reasonable. Also, just as another point of view a 15% is a triple threat for any business ... because 15% property value increase equals x 3 in business/property tax versus a residential rate.