Derelict properties could see higher tax rate

Cold Lake, AB – A new subclass for residential properties is being explored by City Council that focuses on derelict residential properties.

“This subclass is meant to focus on neglected and abandoned properties,” said Mayor Bob Mattice. “It is not meant to target properties that people reside in, but rather those that have been left empty and fall into disrepair. We’re not looking to squeeze people out of their homes.”

The City understands that a derelict property is a cause of concern from neighbouring property owners. Reasons behind the move include public safety, community health, protecting neighbouring property values, and reducing a burden on resources, such as RCMP and Fire-Rescue services, that are sent to derelict properties. 

“By creating this subclass and increasing the property tax associated with these abandoned places, we are trying to encourage the property owner to either maintain the property or to sell it to someone who can renovate or redevelop it into a livable property again,” said Mattice.

Tax bills are calculated based on the assessed market value of a property. Derelict properties typically have a low market value, meaning they only pay a very small amount of property tax. By increasing the tax rate for the subclass, an abandoned, derelict property would be coming more in line with property taxes of other properties in the city.

“One of the stipulations in the bylaw is that the property is unoccupied by the owner or a legal tenant,” said Mattice. “This helps define the kinds of properties that we are looking to identify with this subclass. Property owners would also have the opportunity to appeal the classification if they feel it doesn’t apply to them.”

Council opted to leave out a pre-set tax rate from the bylaw, choosing to set the rate annually when all tax rates are set for the city.

The bylaw follows the path other municipalities have taken to deal with abandoned properties. City Council passed the bylaw’s second of three readings, meaning it will return to a future council meeting for third and final reading to be passed and formed into an official bylaw.

More information on property taxes can be found at www.coldlake.com/tax

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