Alberta ratepayers will see a reduction in the education property tax mill rate this year. The newly released 2023-24 provincial budget confirms the government will requisition $2.5 billion to apply to education operating costs, which is consistent with the 2022 levy. However, that will be spread across an expanded assessment base.

As a result, the non-residential mill rate will be set at $3.76 per $1,000 of assessed value, approximately 3.6 per cent lower than last year’s rate of $3.90 per $1,000 of assessed value. Residential ratepayers can expect a 3.4 per cent discount as the mill rate drops to $2.56 per $1,000 of assessed value, down from $2.65 per $1,000 in 2022.

“The tax has covered about 30 per cent of educational operating costs in recent years, with the remainder funded through general revenue,” budget document advises.

Meanwhile, Alberta’s municipalities can look forward to a slight boost in grants-in-lieu payments for provincial properties exempt from local taxes. The budget promises a phased $4 million top-up over three years, increasing the total value of grants from $36 million in 2023-24 to $40 million in 2025-26. The extra funds acknowledge rising property values and are meant to ensure that provincial sites can be consistently maintained.

“The Grants in Place of Taxes program acknowledges that the province benefits from municipal services, such as roadwork, snow clearing, transit and emergency services, provided to government properties,” the budget document states.