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RFD- 3495 Bylaws   Item #   9. d.    
Regular Council Meeting Agenda
Meeting Date: 03/11/2019  
Title:    C-1067-19 - All Three Readings - 2019 Supplementary Assessment Bylaw - Pungur-Buick
Department: Corporate Services  
Strategic Vision Element: This topic relates to all three of the City’s strategic vision elements contained in Council’s Strategic Plan Related Goal: Spruce Grove has a robust, growing economic base that generates balanced revenues to support the City’s high standards for services and programs.

Request for Decision Summary
The purpose of this report is to seek Council's authorization for supplementary assessments of new improvements for the purpose of taxation in 2019.

Proposed Motion
That first reading be given to Bylaw C-1067-19 - 2019 Supplementary Assessment Bylaw.
That second reading be given to Bylaw C-1067-19 - 2019 Supplementary Assessment Bylaw.
That unanimous consent be given to consider third reading of Bylaw C-1067-19 - 2019 Supplementary Assessment Bylaw.
That third reading by given to Bylaw C-1067-19 - 2019 Supplementary Assessment Bylaw.
A supplementary assessment bylaw applies to the year in which it is passed, and must be passed prior to May 1 of that year. The bylaw will authorize the municipality to levy property taxes on newly constructed improvements which are occupied or completed during 2019 but were not assessed at 100 per cent completion on the annual assessment prepared as of December 31 2018. Supplementary tax levies are calculated on a pro-rated basis. When a parcel's zoning changes and subsequently increases the property value, the increased value can not be taxed through supplemental assessment.

Most Alberta municipalities prepare supplementary assessments.

Supplementary assessment is optional. It can only proceed after Council passes the recommended bylaw. Through the supplementary assessment, the City is able to allocate taxes on properties that are improved or newly constructed during a year. Supplementary tax contributes towards the cost of providing services.
Assessments are prepared by the Appointed Assessor and are subject to review and appeal by the owner of an assessed property. The notification process for supplementary assessment is similar to the process for annual assessments.

Assessments are only calculated on improvements completed from January through to September. Each May, a Combined Tax and Assessment Notice is mailed separate from the Annual Tax Notice and will be for construction completed up to April 30. Combined notices will also be mailed in October for construction completed up to September 30. Construction occurring between November and December is not assessed for supplementary however, the annual assessment issued the following year will reflect this growth. 

Property owners may file a complaint on any supplementary assessment notices. Deadlines and details are on the supplementary assessment notice.
An estimated 204 properties will receive a supplementary assessment in 2019.

Without a supplementary assessment bylaw passed by May 1, the amount approved in the 2019 Corporate Plan to be raised through taxation would be generated through the annual levy. Property owners would receive only one tax notice within the year and construction completed in 2019 would not be taxed until 2020. There would be no impact on revenue, only to the distribution of the levy among rate payers. In 2018, the impact of supplementary assessments on a market value of $400,000 was $11.87. Supplemental revenue for 2018 was $133,400.
C-1067-19 Supplementary Assessment Bylaw

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