List of properties facing tax auction released

By MEDICINE HAT NEWS on February 10, 2023.

https://www.medicinehatnews.com@MedicineHatNews

An initial list of properties that could go to tax auction next month in Medicine Hat shows 13 addresses, but city administrators believe almost all will be removed before an auction takes place in late March.

The list, containing properties in arrears since the 2019 tax year, is about double the number of a similar list in 2022, but staffers say its unusual for any to officially proceed to the auction block.

The current list shows one commercial property and 12 homes in a wide array of communities around the city.

On Thursday, council’s corporate services committee received the list and reserve bids – minimum sales price, which by regulation is set at evaluated fair market value – ahead of an advertised auction March 31.

Historically, very few properties proceed to a sale, and staffers are again predicting most will be cleared by a deadline of 9 a.m. on auction day.

“We do everything possible to make (owners) aware of the process, and allow them the most time possible to make financial arrangements,” said corporate services division head Dennis Egert.

He noted to committee that one property has already been removed and two more are the subject of payment agreements struck this week that still need to be finalized.

Those came after in-person notification was conducted this week.

The 2023 auction list was published in the Alberta Gazette earlier this month. Any properties still in arrears will be published in the News.

Six properties appeared on the 2022 list, but eventually no auction was required.

Only one property since 2000 has been the subject of a qualified bid at auction.

Most auctions are cancelled as owners or finance companies make arrangements to cover debts in the lead up to sales.

If sold however, the proceeds are forwarded to the previous owner after encumbrances, debts and a five per cent administration fee are paid.

Tax season begins

The 2023 city tax assessment is completed and will be mailed out to property owners on Feb. 28, administrators said Thursday.

That will give property owners 60 days to dispute assessment amounts prior the list becoming official in early May when city council will approve a new mill rate to charge against the assessment. Tax notices would be mailed out May 18.

The city’s 2023 budget calls for a five per cent increase in tax revenue this year to cover expenses, but finance officials predict one per cent growth in city-wide assessment value due to new construction.

That would leave a general increase of four per cent but individual bills may vary.

Taxes are due June 30.

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