The sudden spike in residential property taxes could have been phased in over a longer period of time.
In the 2013 budget, the province said it was ending its education property tax mitigation, a system that had been in place since 2000 where other communities helped subsidize Fort McMurray’s high cost of real estate.
Jean-Francois Wen, an economics professor at the University of Calgary, says the intention was always to end mitigation, just not this late in the game.
“What is desired is that properties of the same market value face the same property taxes, regardless of where the property is located,” he said.
“So the government waited a long time to remove mitigation, and so the brunt is being borne now very rapidly in Fort McMurray.”
The increase will cost homeowners an additional $800 over two years.
Wen also talked about the need to put a plan in place to release provincially-owned land that can be developed.
“One solution would be to be more gradual and to release land for development at an announced, steady pace over time,” he said.
“That would certainly reduce the sudden impact on existing owners.”
