By Ruby Pratka
Local Journalism Initiative
Cowansville residents will still feel the pinch of a property tax increase despite a drastic cut in the tax rate, according to the city’s 2024 budget released Dec. 18.
Skyrocketing property values are the main reason why — the value of an average single-family home has increased by 58 per cent on the most recent roll, which was released earlier this year and based on July 2022 market value. Multi-unit buildings have gone up in value by an average of about 41 per cent, commercial buildings by 30 per cent, industrial buildings by 37 per cent and unused land by nearly 70 per cent.
In response, the city has slashed the tax rate. The rate for a single-family home or an agricultural property is now 62 cents per $100 of value compared to 94 cents last year; multi-unit residential buildings are now taxed at 97 cents rather than 72 cents and vacant land is taxed at $1.24 rather than $1.29. Rates for commercial buildings have been reduced from $2.15 to $1.74 for buildings worth less than $800,000 and $2.33 to $1.94 for those worth more than $800,000; for industrial buildings, rates have been reduced from $2.21 to $1.76 and $2.38 to $1.96 respectively.
According to data provided by the city, 84 per cent of residential property taxpayers will see an increase of less than $300 and about 18 per cent will see a tax reduction. The average increase is 5.3 per cent or $145.50. Residential utility and service fees will rise slightly — from $190 to $197 for water, from $145 to $152 for sewage, from $140 to $145 for garbage collection, from $31 to $32.50 for recycling and from $60 to $65 for septic tank emptying. Water and sewage fees for businesses will rise from 52 cents per square metre and 28 cents per square metre to 58 and 32 cents respectively. Residential pool taxes will remain the same at $35 for an above-ground pool and $70 for an in-ground pool.
The owner of an average home can expect to pay a total of $2,908.50 in taxes and utility fees, compared to $2,763 last year. The city has switched the tax payment schedule from four yearly instalments to five (in February, April, June, September and November).
“In the current inflationary context, where prices for most goods and services have risen significantly, the 2024 budget has been prepared in particularly difficult conditions,” said Mayor Sylvie Beauregard. “Rising interest rates, the labour shortage, the housing shortage and various social and community issues are among the challenges we have to work with — and will have to work with in 2024.”
She referred to the jump in property values — and the corresponding decrease in tax rates — as “historic”.
“The uncertainty around property taxes in 2024 has been felt by a lot of citizens and it was essential for us to reassure the population. We worked to reduce the impact on citizens to maintain a balance between economic growth and the need to protect residents’ purchasing power … in light of the cost of groceries and gas, we wanted to give people a little breathing room [with the five-instalment payment plan],” she said. “The last few years, people have had no tax increase or a very minimal one, but we have no choice this year because the costs of everything are going up.”
Major infrastructure projects planned for the coming year include the replacement of pumping equipment at the water treatment plant, the construction of a new road and new water and sewage lines serving the new francophone primary school, reinforcement of the Mitch Bédard dam, replacement of a fire engine ladder and the first steps — architectural plans and estimates — for the long-awaited renovations to the aquatic centre. Beauregard also spotlighted a $250,000 investment — 67 per cent coming from a provincial subsidy — in pickleball fields. “We had to prioritize essential [infrastructure] projects, but we didn’t want to cut recreation,” she said.