Apartment owners in Grande Prairie will see a significant difference when they receive their 2014 Property Taxes. City Council voted last night on the new bylaw, which makes tax rates for apartment buildings in the city equal to those of low density residences, a difference of nearly 18%. Mayor Bill Given says this change will positively and directly impact the bottom line of apartment operations in the city.
“But I don’t think anybody’s under any illusions that this will have a direct impact today or tomorrow on the per month rental rates. This really is something that’s intended to put the right incentives in place to spur on future development.”
Given says the change will cost the city about a million dollars in lost revenue, but it won’t have an impact on any other tax payers because the province reduced the amount of education taxes for this year.
In the past, high density residences were treated as a commercial, profit earning business, and were taxed as such.