Strong sale prices in Medicine Hat's real estate market last year will push up assessment values this year, a city committee heard this week. The CPKC station in downtown Medicine Hat is the backdrop of a "sold sign" on the Southeast Hill.--News Photo Collin Gallant
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Rising real estate prices will push property tax assessments higher this year in Medicine Hat for both homes and businesses, though that won’t push tax bills higher than a planned 5.6 per cent increase.
But new exemptions set down by the province and the change of the former Aurora Cannabis greenhouse from a commercial to farm class will erase any new growth that would have cut into the increase.
“Even if assessment changes we still only collect the same amount of money,” city assessor Sue Sterkenburg told council’s corporate services committee on Thursday.
“Typically we do see growth within the assessment roll each year – physical growth due to new construction, and market growth.”
“This year we budgeted for zero growth because we knew we’d see a loss to farm (reclassification), also due to ministerial orders that affordable housing becomes exempt if it meets certain criteria.”
Typically buildings constructed during the year bring down relative increases due to their addition of new accounts and new value to the tax roll.
Aurora Sun greenhouse however, is being transformed to grow plant seedlings and is now classified as general farm building, which is not taxable under provincial statutes.
That removes $63 million in assessed value from the non-residential class. Changes to government-supported affordable housing units – also now exempt – result in a loss of $19 million in assessment value for the multi-family residential class.
That led committee chair Coun. Robert Dumanowski to remark, “Wow, that just keeps getting bigger.”
Annual market valuation adjustments reflect market pricing conditions at the middle of the previous year, and at July 1, 2024 the city’s low-supply real estate market was pushing prices higher.
Most detached residential accounts could see increases between 3.4 and 4.9 per cent, while the median commercial property could see a rise of 5.7 per cent.
Multi-family housing value rose 5.5 per cent, while multi-unit seniors facilities saw a median decrease of 1.5 per cent.
The median value change for residential condominiums was 4.9 per cent higher, followed by mobile home parks (4.7 per cent), single-family homes (3.8 per cent), tri- and four-plexes (3.7) and manufactured homes at 3.4 per cent.
Senior multi-family buildings saw a 1.5 per cent decrease.
Hotel subclass assessments rose by 4.3 per cent.
“They’re slowly recovering after the decreases after 2020,” said Sterkenberg, noting the class is considered on a three-year weighted scale.
As well, commercial rents are stable, she said. Sales values are up and industrial vacancy rates have decreased.
Tax assessment notices are mailed at the end of February.
The 2025 city budget calls for $94.6 million in municipal tax revenue, which equates to a 5.6 per cent increase. That dollar figure is applied against the total assessment to determine the tax or mill-rate in April., after the tax roll is finalized.
Taxes are due on June 30 each year.
A community level overview of changes shows assessment values rose highest in parts of northeast Crescent Heights, east Riverside, Crestwood and East Glen, (areas that were subject to physical re-inspection for this year) and older portions of South Ridge.
All other areas rose in the five per cent range except for slight overall decreases in a strip of west Crescent Heights and Park Meadows.
