The Town of Okotoks is sending feedback to the Province about property tax exemptions for affordable housing that kick in next year and leave other residents to pick up the balance.
The rules exempting non-profit subsidized housing from property tax were introduced by the UCP government this spring as part of amendments to Bill 20.
Municipalities can provide feedback on the rules before they take effect on Jan. 1, and Okotoks council discussed them during its meeting on July 15.
A spokesperson with Municipal Affairs said municipalities will be able to opt out of implementing the tax exemption.
Michelle Grenwich, social planner with the Town, said the exemption will see an estimated $50,000 worth of tax revenue passed on to other ratepayers, and that number will grow as more affordable housing is built.
“As we grow our stock, those taxable properties will potentially not be taxable,” Grenwich said. “So that just increases the tax burden on the remaining tax base.”
The Province said the tax exemption will help increase the amount of affordable housing in Alberta.
Coun. Brent Robinson said property taxes would account for a small portion of the operating costs for an affordable housing site.
“(The exemption is) not going to move the needle super hard on whether these are going to get built or not,” Robinson said
Grenwich said the change comes as municipalities are being asked to contribute more towards the costs of new affordable housing.
“This also does represent a further downloading of provincial responsibility for affordable housing to local ratepayers,” she said.
Before the rules take effect, the Town will ask the Province to consider limiting the number of years a property can be tax exempt and ask for clarity about what qualifies as affordable housing.
Based on current information, it is not clear what properties would be eligible for an exemption, Grenwich said.
“The level of affordability in subsidized housing can vary considerably,” she said.
The Town will also ask the province to consider a grant program to offset costs.
Seniors' lodges and property owned by the Alberta Social Housing Corporation are already tax-exempt.
*this story was updated on Aug. 1 to reflect that municipalities will be able to opt out.
