Property taxes are a part of home ownership. They help pay for services that you, as a resident, get to enjoy (such as roads, libraries, parks, garbage pickup, schools, sports and arts facilities, and snow removal).
In Lethbridge, 72% of your property taxes are municipal, going directly to city hall. The other 28% go to the provincial government (for education purposes) and the Green Acres Foundation (a local senior citizen housing management body).
Here’s breakdown of how the city divvies up the municipal portion of your tax dollars:
Knowing where your tax dollars go can help you feel like you’re receiving value for the money you pay. That being said, paying your taxes can be challenge, especially if you own an expensive home.
For example, the City of Lethbridge calculated that for a single family home assessed at $252,000 in the current tax year, owners would have to pay just over $2,500 in taxes. That can be a significant amount of money for someone to pay at one time.
The Tax Instalment Pre-payment Plan allows you to register for splitting your tax bill into smaller payments spread out over 10 months. Starting in August of the new tax year, the City of Lethbridge withdraws a set amount from your bank account each month. Instead of paying a one time fee of $2,500 in June, you can pay 10 monthly payments of roughly $250 each.
Not only does signing up for the TIPP make tax payments more affordable, but you get a 1.25% discount for prepaying and the City never bills you for service charges.
If you have more questions about property taxes, please contact us.