RED DEER -- Red Deer County will have a zero rate tax increase this year to help residents during the COVID-19 pandemic.
On Tuesday, council gave first and second readings to the 2020 Tax Rate Bylaw. They also approved a deferral of penalty charges to Oct 1 instead of July 1, with the penalty being reduced from 6 per cent to 4 per cent for the 2020 taxation year.
Taxes will still be due on July 1, but outstanding balances will not receive a penalty until the end of the three month deferral period.
"We’re in a tough time and there are a lot of folks who aren’t working, and we’re not really sure where everything is going to end up," said Red Deer County Mayor Jim Wood.
"We want to do the best we can to help our folks get through this tough time."
Due to the pandemic and its effect on the economy, the county has collected approximately $100 million less in total assessments. The tax freeze will add to that reduction.
"We’re giving up this year, from last year, over two million dollars," said Wood.
Wood said for some people, freezing the tax rate will actually decrease their taxes.
"Many values of properties have actually dropped, so by actually keeping that tax rate at the same rate as last year, some people’s taxes will actually go down."
Council will return on May 12 for final approval for the 2020 Tax Rate Bylaw.
