Property Taxes

Property tax payments are due on the last business day of  June of each year. Assessment Notices are mailed by mid-March, and Property Tax Notices are mailed by the end of April each year.  The due date is specified on the tax notices and is also advertised for two weeks in the local newspaper (Westlock News).

• The Town of Westlock offers a pre-authorized payment program to those taxpayers, residential and commercial, who wish to pay their taxes on a monthly basis. Many people find it difficult to make a single payment due once a year. Monthly instalments break your property tax into smaller amounts, making it easier to budget.
• To join, simply complete the application form, attach a VOID cheque and send or deliver it to the Town of Westlock.
  • Download and complete the Property Tax Payment Pre-Authorization Form

• You may withdraw from the plan at any time by simply notifying the Town in writing of your intention at least two weeks before the next payment date.

• In the event that current taxes, including local improvement levies, requisitions and other amounts appearing as charges on the current year’s Property Tax Notice, remain unpaid after the 30th day of June in the year in which the same were first levied, there shall be added a penalty as follows:
  
  In the amount of four (4%) percent on July 1st of the year in which they were first levied
  
  In the amount of eight (8%) percent on August 1st of the year in which they were first levied
  
  and any amount so added shall form a part of the current taxes as a lien against the land under the provisions of the Municipal Government Act.
   
• In the event that taxes remain unpaid after the 31st day of December of the year in which the property taxes were first levied, there shall be added a penalty of fifteen (15%) percent on the 1st day of January of each of the next succeeding years thereafter so long as the property tax arrears remain unpaid, and every amount so added shall form a part of a lien against the land under the provisions of the Municipal Government Act.

Each year, council determines the amount of money it needs to operate the municipality. From this amount, council then subtracts known revenues (for example: licences, grants and permits). The balance is the amount of money the municipality needs to raise through property taxes in order to provide services for the year.

This revenue requirement is then used to calculate the tax rate. The tax rate is the percentage of assessed value at which each property is taxed in a municipality. The revenue requirement is divided by the assessment base (the total value of all assessed properties in the municipality). The tax rate calculation is expressed in the following formula:

Revenue requirement = Tax rate
_________________________
Assessment base
The tax rate is applied to each individual property assessment using the following formula:

Property assessment X Tax rate = Taxes payable
This formula means that the assessed value of the property in dollars is multiplied by the tax rate set by the municipality. The result is the amount of taxes to be paid for each assessed property.

The municipality adjusts its tax rate on a yearly basis, depending on its revenue requirement. The tax rate council chooses to set depends on the assessment base in the municipality and the amount of money it needs to generate using the property tax. If council requires more revenue to run the municipality, and the assessment base in the municipality has remained same, council will have to increase its tax rate to generate the additional revenue.

If the assessment base in a municipality increases, and the tax rate remains the same, more tax dollars will be collected compared to the previous year. To collect the same amount of revenue, council would reduce its tax rate to reflect the increased assessment base.

Property taxation is the most important single source of municipal revenue. The amount of money that is to be raised through property taxes is set by council each year. The tax rate, together with the assessed value of the property, determines the amount of property tax payable each year. Assessment Notices are mailed out within the first quarter of each fiscal year and Property Tax Notices are mailed out at the end of April and cover the calendar year from January 1 to December 31. Property tax payments are due on the last business day of June.

• In Alberta, education is a provincial program. The taxes that fund the program are raised and distributed on a provincial basis. Education property tax dollars are pooled in the Alberta School Foundation Fund and then allocated among school boards throughout the province. This system of pooling taxes from all municipalities enables the Province to provide all students with a standard level of education, no matter where they live. Each year, the Province calculates the amount that every Alberta municipality must contribute towards the public education system.
   
• The calculation is based on a formula that takes into account the equalized assessment in each municipality and the provincial uniform education property tax rate. The Province notifies municipalities of the amount of education taxes they are required to collect. Each municipality then establishes a local education property tax rate. This tax rate is calculated by dividing the required amount by the municipality’s current taxable assessment.
  
  The municipality then applies its local education tax rate to the assessed value of each property to determine the amount of education taxes each property owner is required to pay for the year. Municipalities include the education property tax on their annual property tax bills to property owners. Municipalities collect education tax dollars from their ratepayers and sends them to the Province, and, in some instances, to a separate school board.

The Town's tax revenue goes into a general revenue fund, which is used to pay for all the operating expenses of the Town that are not covered by provincial grants, user fees or other revenue sources. Many of the services, such as street and parks maintenance, fire protection, traffic lights and streetlights are provided on the basis of Town-wide standards, and all citizens in every area of the town enjoy the benefits derived from these services.

Property assessment promotes fairness by ensuring that two similar properties within a similar geographic area will be assessed and taxed at the same rate. All property values change over time, but not all change at the same rate. Some properties increase in value faster than others. If assessed values were not updated as market values changed, some taxpayers would soon pay a disproportionate share of taxes compared to current values. To maintain a fair sharing in the tax rate between properties, assessed values must be up-to-date.

The prosperity and general well being of society, or the community we live in, is directly related to the education of its people. For that reason, the costs of education are deemed to be the responsibility of all of society. Your education, for example, if received in Canada, was largely paid for by the previous generation of taxpayers.

Provincial legislation specifies that the funds for schools are to be collected by municipalities. The Province (public) and separate school boards requisition revenue they require from the Town, and the total levy is distributed among taxpayers through their property tax bills. People who do not own property contribute indirectly through their rental or lease payments.

There are three main components to your tax bill: the municipal portion, seniors lodges and the school portion. Within the municipal portion, there may be a number of sub-elements: local improvement taxes; general municipal services;

The Seniors Lodge is forwarded to Homeland Housing to support senior’s accommodations.

The school portion, or education taxes, is collected by the municipality on behalf of the provincial government, and the funds are distributed to the public and separate school systems operating in the Town of Westlock.