Calgary homeowners who live outside flood zones will have to carry more of the tax burden in 2014.
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A new report has found 2,300 homes in Calgary saw their market value drop as a result of the June flood. City assessors say the decrease in value is worth a total of $405 million.
The amount of tax paid by a homeowner is based on an annual assessment of the value of their property.
City assessors originally said that the loss in value will mean about $2.4 million less in tax revenue from those homes next year.
Mayor Naheed Nenshi says he's not surprised by the numbers. In fact, he thought it might have been worse.
“I have been a little bit concerned since the flooding happened that the impact of the flood on the properties that were flooded and the reduction of their property values would have an impact across the whole community."
Nenshi says he's not sure if Calgary is eligible to apply for a provincial program to assist municipalities hurt by lower tax revenues caused by lost property values.
To make up for the shortfall, homeowners in non-flood areas will likely see a slight rise in their taxes in 2014.
Property assessment notices will be mailed out in early January.
Calgary homeowners were already facing a tax hike of about five per cent for the upcoming year to cover off increases in municipal spending; however, a tax rebate announced at the end of November could offset the increase.
The city made the following corrections to previously reported numbers: - Just under 2,000 homes in Calgary saw their market value drop, not 2,287. - The value of that drop is worth $405 million, not $316 million. - There will be $2.4 million less in tax revenue, not $2 million.Dec 11, 2013 12:45 PM MT