Charlottetown property taxes could rise further for some
Island property tax assessments went up 1.6 per cent this spring, the annual increase based on the consumer price index, but Charlottetown is looking for more property tax revenue.
The city is asking the province to cancel the municipal property tax owner-occupied residential credit. The credit applies to property owners who bought their homes before 2005.
When the credit came in it was meant to compensate homeowners who'd seen their assessments rise more than the annual CPI in years prior to 2005. Those 2005 homeowners have continued to receive the same credit ever since. No one who bought their property after 2005 receives the credit.
"We were looking at trying to balance our 2015 budget, and we were that close to a tax rate increase for everybody in the city," said city finance manager Scott Ryan.
"[We] looked at this as a way of helping to balance the budget, and said rather than putting tax rate on everybody, we looked at terminating this credit."
The end of the credit would affect about 3,800 Charlottetown homeowners. On average each would see their taxes increase by about $80, leading to an extra $300,000 in revenue.
The city has asked the province to make the cancellation retroactive, meaning new bills would be sent out. Owners would have to make up the difference on their final two property tax installments this year, because the first instalment is due at the end of May.
The change would only affect Charlottetown homeowners, and only those who've owned their homes since 2005.
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