How are taxes calculated?
The relationship between assessment and taxes comes from the fact that municipal governments levy taxes as a “mill
rate” that is charged as a proportion of a property’s assessment. In addition to mill rates, Councils can use mill rate factors (MRF), base tax and minimum tax; individually or in combination with each other, when determining their taxing policies.
Taxes = ((Assessment x POV) x (Effective Mill Rate) ÷ 1000
Eg. Assessment of a cultivated quarter section is $150,000
RM mill rate is 15 and the mill rate factor (MRF) is 0.48 , Education mill rate is 1.42, and the RM has a $100 base tax on all land within the municipality.
Municipal taxes = ((150,000 x 55%) x (15 x 0.48) ÷ 1000 = $594.00
Education taxes = ((150,000 x 55%) x 1.42) ÷ 1000 = $117.15
Base tax = $100.00
Total Taxes owing = $833.84
Eg. Assessment of a house and lot in a hamlet is $150,000
RM mill rate is 15 and the mill rate factor (MRF) is 0.70 , Education mill rate is 4.54, and the RM has a $100 base tax on all land within the municipality.
Municipal taxes = ((150,000 x 80%) x (15 x 0.70) ÷ 1000 = $1260.00
Education taxes = ((150,000 x 80%) x 4.54) ÷ 1000 = $544.80
Base tax = $100.00
Total Taxes owing = $1904.80
What are Percentages of Value (POV)?
POV’s are the percentage of assessment that is taxable. They vary by property class and are set by the Provincial
Government. 2024 POV’s are as follows:
Non-Arable Land – 45%
Arable Land – 55%
Residential – 80%
Commercial & Industrial – 85%
How are mill rates determined?
Mill rates are set by Council based on how much revenue is required to be generated from the tax base to cover annual
expenses. The Provincial Government sets the mill rate for education taxes and usually vary by property class. Council sets one mill rate for the entire RM and may then apply Mill Rate Factors (MRF) to the different property classes. The mill rate multiplied by the MRF determines the effective mill rate.
What are the current mill rates?
For 2023 the Municipal mill rate is 15 mills and MRF are as follows:
Agriculture – 0.48
Residential – 0.70
Commercial & Industrial – 2.10
The Education mill rates for 2024 for both public and separate schools are as follows:
Agriculture – 1.42
Residential – 4.54
Commercial & Industrial – 6.86
Resource (Oil/Gas/Pipeline) – 9.88
More information on municipal property taxes can be found here.