The gap between what the lowest and highest property owners in Carrot River is smaller, thanks to a major tax reform.
Residents will pay a $945.85 base tax, plus approximately 0.406 per cent of their total property assessment. If that bill is less than $1,331 – which only applies to residents with a total assessment of less than $95,000, then they must pay $1,331.
Commercial properties will pay a $634.37 base tax, plus approximately 1.244 per cent of their total property assessment. They must pay at least $1,331 – which only applies to a business with a total assessment of less than $56,000.
The idea behind the change is that there are core services that every resident uses in the town, so it’s fair that everybody should pay for it, rather than have the higher paying taxpayers subside the cost.
“I think it’s a good, all round approach on it,” said Bob Gagné, Carrot River’s mayor. “I think it’s fair.”
“It’s equitable that everyone pays their fair share of taxes.”
Kevin Trew, the town’s administrator, said the changes aren’t out of line with what other communities are doing.
“We have investigated other towns nearby, seeing what their base tax is, their minimum tax is and we’re fairly similar.”
Comparing to last year
Comparing what residents pay in municipal taxes this year compared to last year is more complex not just because of the tax reform, but because properties have been reassessed.
In Carrot River, the average tax assessment has increased by 50 per cent for residential and 65 per cent for commercial.
“We did it intentionally this year, knowing there was lots of upheaval in the taxes, so it’s good to get it over with,” Trew said
In 2016, residential properties would have paid approximately 1.295 per cent of their total assessment in taxes, unless the tax bill was less than $1,175, in which case the bill would be bumped to that level.
A home with a total assessment of $100,000 in 2016 would have paid $1,290 in municipal taxes. Assuming the assessment went up 50 per cent, the now $150,000 home will pay $1,554.25. A home worth $150,000 in 2016 would have paid $1,942 and $1,858.45 in 2017 if the assessment increased by 50 per cent.
As for commercial properties, in 2016, they would have paid approximately 2.79 per cent of their total assessment in taxes.
A business worth $160,000 in 2016 would have paid $3,966.40. In 2017, if their assessment increased by 65 per cent, the now $264,000 property will pay around $3,918.46.
Education taxes rising
Where Carrot River residents will get hit in the pocketbook is the increase in education taxes, which are set by the province. While the province has readjusted the proportion of the assessment due to increased property values, they haven’t taken into account Carrot River’s sharp increase.
Easy way to check
For those wanting to know their tax bill, the town has provided a tool on their website. That was done after the designer, who lives in town, wanted to figure out his taxes.
“He just said, ‘I just want to put a calculator on. All you have to do is just plug in what your taxable assessment is and it will tell you what your taxes are,’” Trew said.
Note the calculator uses the taxable assessment, not the total assessment, like this article does. The taxable assessment for residents this year is 80 per cent of the total assessment.
The town notes if the website tool and the tax notice disagree, the price on the notice is the correct one.
