A brief overview on how annual property value assessments affect property taxes in Edmonton.

1. Civic Cents From Budget to Taxes 2011

8. Edmonton’s total taxes are based on the City Budget. City Council decides every December the level of services and types of programs, based on what Edmontonians want and need… … things like transit, police, snow clearing, libraries … everything we see and depend on each day. 1

9. The City adds up the cost of paying for all the services and programs, including the cost of inflation for fuel, materials, labour, etc. for the year ahead. The City also gets revenue from things like grants, user fees, permits and investments. The City subtracts what it gets from this other revenue and the amount left over is the the total amount the City needs to collect from property taxes. If this total cost is higher than last year, our tax increase. For 2011, the total tax increase is 3.85%. 2 3

10. 2011 budget distributes taxes

11. The City uses a fair and transparent method to determine each homeowner’s “share” of total taxes needed. The Province of Alberta requires all municipalities to use the assessed market values of each property to distribute taxes fairly. Total taxes needed Fair share of taxes 4

12. $ $ $ $ $ $ $ $ $ $ $ $ Property taxes are relative: One house valued at twice as much as another house will have twice as much property taxes.

14. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ The values of all properties are added up for the total market value assessment for the entire city. $ $ $ $ $ $ $ $

15. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ One house value is a percentage of the total market value of all properties.

16. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Total taxes needed Total market value of all properties Your share This percentage is the same as that property’s share of the total taxes the City needs. X% X%

17. $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2010 $ $ $$ $ $ $ $ $ $ $ $ Market value assessment is just a tool to distribute taxes. Even if the value of all properties in Edmonton goes up or down, the City doesn’t get any more or less taxes. The City only collects enough taxes to pay for the services in the budget. Total market value of all properties $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $$ $ $ $ $ $ $ $ $ $ $ $ $ $ 2011 $$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

18. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Put another way: Total Taxes required in the Budget, divided by Total Assessed Value of all properties in the city = the property tax rate Total taxes needed Total value of all Properties’ Market Value Assessments = Tax rate Property tax rate x your property assessment = your tax bill 5

19. Your percentage of total – your fair share Total amount needed from residential property taxes. A% A% X = Your Tax Bill Recap Total market value of all properties in Edmonton $

24. Online assessment info