The Town of Okotoks says an increase in education taxes will offset at least some of the income tax cut that was included in this year’s provincial budget.
Local impacts of 2025’s provincial budget were discussed during Okotoks council meeting on March 10.
Mayor Tanya Thorn said the education requisition, money the Town collects with property tax but sends to the Province, has increased over 20 per cent.
The education tax accounts for about one-third of a homeowner's total tax bill, and the way it is presented to taxpayers is “disingenuous,” Thorn said.
“The Province has come out and announced they are giving everybody tax breaks,” she said.
Meanwhile, the Town will be collecting more money on behalf of the Province.
“We are going to be communicating a 22 per cent increase in the amount of tax that our residents are going to send to the Province,” Thorn said.
CAO Elaine Vincent said the increase will mean that a house in Okotoks with an average assessed value will see the property tax requisition climb from about $1,550 last year to about $1,850.
Due to house prices rising more than average in Okotoks and Calgary, those places will pay a higher share in the requisition increase.
"More of that property tax requisition is coming on the back of Okotoks versus the balance of the province," Vincent said.
Although the Town does not set the requisition, it comes to residents on Town of Okotoks letterhead, Vincent said.
“That's a problem, and that's what has got to get fixed,” she said.
The Province collected more for education last year, and the Town said there will be another increase in 2026.
Budget 2025 included design funding for a new high school in Okotoks, but no new money for an interchange on Highway 2 at 338 Avenue.
The intersection is prone to collisions and recently underwent some improvements. The Town said it is working to get updates about the status of the interchange after planning money was announced in last year's Alberta budget.
Increased grant funding through a Grants in Place of Taxes program is good news for municipalities overall but will have a negligible impact in Okotoks, Thorn said.
More schools and more teachers and support staff cost more money. Province gets the majority of the income from income, corporate, and property taxes. The biggest reason for the increase in educational costs come from all the recent arrivals that barely contributed to the revenue so far.
Educational taxes should be made to cover the cost of education from kindergarten to grade 12. This would raise property taxes and therefore the province should balance things and lower others taxes in return.
If areas wanted more or less in education $$$ they should be able to do it via elected individuals from the community they represent. The reliance on another level of government is what creates many of our differences in opinion as two areas don't see the same in terms of spending money.
Different from what we have now, but something to consider as the divide on rural and urban communities will create issues going forward.