How Your Taxes Are Calculated
🔹 Expenses: Each year, Council sets a budget based on the cost of services like police, fire, recreation, parks, and roads. Inflation, service demand, and other levels of government all play a role. Town Council works to balance prudent and predictable taxes with quality services.
🔹 Revenue: In Alberta, towns collect taxes based on property assessments, which determine each owner’s fair share of municipal costs. In Strathmore, a third-party assessor (not the Town) determines property values. Our team then calculates a tax rate (mill rate) that raises exactly the amount needed to fund the budget.
Let’s break it down:
Imagine a town with...
- A $30 million budget
- 10,000 homes valued between $200K and $2M
- An average home value of $500K
- A total property value of $5 billion
To fund the budget, the town sets a tax rate of $6 per $1,000 of assessed value. That means a $500K home pays $3,000 in taxes.
Now, let’s say property values rise 20% to a total of $6 billion.
- The budget stays the same, so the tax rate is lowered to $5 per $1,000.
- If your home’s value also rose 20%, your tax bill stays at $3,000.
👉 If your home’s assessment increased less than average, you might see a tax decrease.
👉 If your home’s assessment increased more than average, your taxes will likely go up.