More affordable housing is undoubtedly necessary in Okotoks and elsewhere in this province, but tax exemptions for such properties should not come on the backs of existing property owners.
The provincial government has introduced legislation that exempts non-profit subsidized housing from paying property taxes, which, on the surface, sounds like a perfectly reasonable idea. Anything that makes housing more affordable, particularly for those at the greatest risk of insecurity, should be pursued, right?
The fly in that ointment is that although the provincial government is the one that came up with the tax exemption idea, it’s neighbouring property owners that will be picking up the tab for its generosity.
Under the plan, tax dollars that would have been going into Town coffers won’t arrive, which means other taxpayers must pick up the slack. The Town of Okotoks estimates $50,000 worth of tax revenue would be passed on to other ratepayers, which isn’t a significant amount when divided among all other properties, but that number will almost certainly grow and is at the whim of the government’s definition of affordable housing.
The move also doesn't take into account that existing taxpayers are struggling under the weight of higher costs for pretty much everything, so adding more to property tax bills that already increased sharply this year seems unfair.
The concept of making affordable housing more affordable makes sense, but downloading provincial responsibility for the issue to local ratepayers doesn’t. If the Province believes a tax exemption is warranted, then it should cover the revenue local governments will lose because of the legislation, which is scheduled to take effect on Jan. 1 of next year.
If the idea is as good as advertised, then the provincial government should have no problem putting its money where its mouth is.