20 per cent jump ‘very disturbing’

Jasper hotels are facing tax increases of more than 20 per cent this year, George Krefting, municipal manager said Wednesday.

At the same time, taxes on the town’s commercial properties will fall anywhere from five to 15 per cent, while taxes on residences will go up by an average of four per cent, he said.

Krefting said the process is not complete, “this still has to go to town council for approval,” but the numbers will likely stand unless property owners are successful in appealing their assessments.

News of the tax increases was greeted with surprise and dismay.

“I don’t believe that anyone will welcome this,” said Chad Gulevich, president of the Jasper Hotels Association. 

“I can’t imagine that hotels are in better financial shape than anyone else,” he said, and wondered how hotels will manage the tax increase.

“Raising room rates is one possibility, but I’m not sure that’s an option for everyone.”

Jasper Chamber and Tourism president Bert Journault said “any tax increase is disappointing – especially in that amount. Hotels make up 80 per cent of the business assessment.”

“The hotel owners won’t be happy, “ he said and added, “it’s very disturbing.”

Krefting’s property tax calculations are based on whopping assessment increases announced earlier this year, and the provincial budget which was released Tuesday.

Property assessments for hotels have soared almost 60 per cent this year, and assessments on commercial, industrial and residential properties rose by 40, 19 and 13 per cent, respectively. 

The Alberta budget set Jasper’s education levy at $3,211,273.11. Residents will pay $1,436,149 of the total and non-residents will be asked to pony up $1,775,124.

Krefting said the provincial budget contained no surprises for municipalities.

“It’s pretty much what we expected,” he said. “The 10-year municipal funding plan was revealed six months ago.”