TAMRMS#: B06
9.1
REQUEST FOR DECISION
title
Property Tax Relief Requests
Presented by: Stephen Bannerman, City Assessor, Financial and Strategic Services
label
RECOMMENDED MOTION(S)
recommendation
That Council move in camera pursuant to section 20(1) of the Access to Information Act to consider outstanding 2025 requests for property tax relief.
body
PURPOSE OF REPORT
To present for Council’s consideration the outstanding 2025 requests for property tax relief. Section 203(2) of the Municipal Government Act provides that a Council may not delegate its powers under section 347 of the Municipal Government Act regarding property tax relief to any person or council committee.
SUMMARY
The Taxation Department has many requests for tax relief each year primarily due to the imposition of tax penalties for late payment. In considering such requests, the City of St. Albert must balance understanding for individual circumstances with the principles of fairness and equity to all taxpayers. Decisions are therefore guided by consistency, transparency, and the broader public interest.
The department itself may only cancel or reduce tax penalties if the City has administratively made an error, omission, or misrepresentation. Administration may only adjust for the current year and has no ability to “go back” to prior years.
Section 203 of the Municipal Government Act prohibits Council from delegating its power with respect to taxes under section 347. Thus, only Council has the ability to provide leniency, in instances where the City has not erred.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
Per Section 347(1) of the Municipal Government Act, requests for property tax reductions, cancellations, refunds, or deferrals must be referred to Council.
BACKGROUND AND DISCUSSION
Council must exercise its discretion in an equitable and transparent manner, as any cancellation, reduction, or deferral has a financial consequence to the City. Council Policy C-FS-15 has been established to provide clarity and guidance regarding how requests for property tax relief may be deliberated at the Council level.
The City of St. Albert communicates property tax deadlines to ratepayers through a variety of methods to avoid late payments. Deadline dates are provided on the tax notice itself, the City of St. Albert website, social media posts, and in advertisements in the local paper.
Several options are available for paying taxes. They include the Pre-Authorized Tax Payment Plan, credit card payment, in-person, by mail, at participating financial institutions, and by telephone or internet banking. Despite these options, there may be circumstances where a ratepayer feels they were unable to attend to the deadline.
Requests for property tax relief to Council are rare, but the Municipal Government Act does afford a property owner the ability to make such a request. Typically, the property owner feels that extenuating circumstances existed, which resulted in the tax penalty or tax arrears being incurred. Again, the challenge is in determining what latitude exists in cancelling or reducing such penalties or tax arrears and when it would be equitable to cancel or reduce tax arrears, cancel or refund all or part of a tax, or defer the collection of a tax.
To this end, C-FS-15 was approved by Council to provide a framework by which decision criteria would be established for dealing with these requests.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
Property owners first communicate with the Financial and Strategic Services Department about their tax penalty or outstanding tax arrears. Cancellations of penalties can only be made by the Financial and Strategic Services department, if it is ascertained that an administrative error was made in the administration of the tax account.
If no error was made on the part of the City, then the property owner has the ability to make a request for tax relief to Council, as referenced to in section 347(1) of the Municipal Government Act.
IMPACTS OF RECOMMENDATION(S)
Financial:
Any request for property tax relief has a potential financial implication to property tax revenues. For the 2025 tax year, total property tax relief requests total approximately $11,248.
Compliance & Legal:
Section 347(1) of the Municipal Government Act allows Council to cancel or refund tax arrears, cancel or refund all or part of a tax, or defer the collection of a tax if it considers it equitable to do so, with or without conditions.
Program or Service:
It is anticipated that continued use of C-FS-15 will bring greater clarity, transparency, and fairness and equity in the administration of property tax accounts. By providing a more formalized mechanism for property owners to request tax relief, customer service is enhanced.
Organizational:
None at this time.
Risks:
Decisions by Council to allow tax refunds, cancellations, reductions, or deferrals are typically rare. However, any decision in this area to allow a tax refund, cancellation, reductions, or deferral may imply an unintended precedent. This may be considered a risk.
Fairness and equity are legislated within the assessment and taxation process in Alberta. A ratepayer being treated in a different way may result in the perception of inequity within the taxation base. Conversely, allowing property owners the opportunity to make a request for tax relief is a legislated right within the Municipal Government Act.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Not Applicable
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
Service Name: Tax Account Administration
Service Definition: Administration of the annual and supplementary tax levy, pre-authorized payment system, schools support declarations, property tax collection process, and land title office changes.
Service Component: Not applicable
Current Service Level: Not applicable
IMPACTS OF ALTERNATIVES CONSIDERED
ALTERNATIVE 1: Council wishes to support all or part of an application.
Financial:
2025 applications will not have a significant impact on the City’s overall financial activities. The total potential revenue impact considering all applications totals $11,248, which may be funded through the Stabilization Reserve. All decisions should take into consideration the fairness and equity to taxpayers within the City of St. Albert.
Compliance & Legal:
Section 347(1) of the Municipal Government Act allows Council to cancel or refund tax arrears, cancel or refund all or part of a tax, or defer the collection of a tax if it considers it equitable to do so, with or without conditions.
Program or Service:
All applicants have complied with Policy C-FS-15 and completed a Property Tax Relief Request Form. They have been provided with a detailed description of penalties/arrears applied to their tax accounts. Applicants are also afforded an opportunity to address Council directly regarding the specific nature of their request.
Organizational:
None at this time.
Risks
As stated previously, cancellations, cancellations, reductions, or deferrals, are typically rare. Any decision in this area may imply an unintended precedent, which could be construed as a risk. 2025 applications are focused on atypical, compassionate circumstances whereby the ratepayer was unable to attend property tax payment.
ALTERNATIVE 2: Council does not wish to support applications for Property Tax Forgiveness.
Return to public meeting. No further action is required. Ratepayer(s) will be notified of Council’s decision.
Financial:
Not applicable.
Compliance & Legal:
Council’s decision on a request for Tax Relief is considered final. There is no further recourse available, and the matter is considered closed.
Program or Service:
Not applicable.
Organizational:
Not applicable.
Risks
Not applicable.
body
Report Date: November 18, 2025
Author(s): Stephen Bannerman
Department: Financial and Strategic Services
Department Director: Anne Victoor
Managing Director: Diane McMordie
Chief Administrative Officer: William Fletcher