Emily Plihal
Local Journalism
Initiative Reporter
Peace River town council decided at its regular meeting on March 24 to not exempt affordable housing from paying municipal taxes.
Recently adopted by Municipal Affairs Statutes Amendment Act were changes including full exemption of non-profit subsidized affordable housing from property taxation beginning in the 2025 tax year. These properties were not previously exempt under that act.
“This category of housing is assessed at about $8 million,” explains Peace River Mayor Elaine Manzer of the affordable housing in the town.
“If (council) was to exempt this housing category from property taxes, then other taxpayers would have to make up the amount of lost taxes, which are estimated to be about $81,000.”
Manzer says the decision to not exempt the properties was in large part because of the onus it would put on other ratepayers in the community.
The Municipal Affairs Statutes Amendment Act is a provincial legislature act that brought changes to both the Local Authorities Election Act and also the Municipal Government Act.
The definition for affordable housing accommodation is defined under the Alberta Housing Act as a housing accommodation designated by the minister.
“Affordable housing will continue to pay property taxes as they have in the past, if the bylaw passes second and third readings,” says Manzer.
“If second and/or third reading of the bylaw is defeated, then it will cause the Town to lose tax revenue. (If overturned) it could cause some residents to pay more in taxes to make up the lost revenue.”
Manzer notes the decision will not require a public hearing but it will come back to council for further consideration including voting on second and third readings before it is passed.