Municipalities want Alberta gov’t to collect education levy itself instead of through property taxes

A classroom at an unidentified Alberta school. (CTV News Edmonton)

With the education portion of property taxes going up, municipalities across the province are pushing the government to collect that money itself.

Last week’s Alberta budget included a 4.5-per-cent increase over two years in the education property tax.

And the heads of organizations representing the province’s urban centres say since the money goes to the province, it should gather it.

“I think there’s a more transparent way to bring more money into the program rather than through property taxes from municipalities,” Tyler Gandam, the president of Alberta Municipalities, told media on Thursday at a conference held at Edmonton’s Westin hotel.

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Jeff Genung, the chair of the Alberta Mid-Sized Cities Mayors' Caucus, echoed Gandam’s sentiment, saying Thursday he believes the province could help “in the messaging to our residents,” something with which he understands it wants to do.

“Perhaps the province could help by telling Albertans themselves, not just asking municipalities to share that message,” Genung said.

Education property taxes are collected by municipalities from home, business and farm owners alongside municipal taxes and transferred to the provincial government. The taxes generated 28.5 per cent of education funding in 2024, a percentage that will increase to 31.6 per cent this year to the tune of an additional $400 million before rising again in 2026 to 33 per cent.

Last week, Finance Minister Nate Horner said the increase in the tax is to better sustain education funding, something both Gandam and Genung support.

Municipal Affairs Minister Ric McIver said increased costs in education led the government to increasing the education property tax levy.

“We’ve committed in the last few months to $8.5 billion for school construction -- that money’s got to come from somewhere,” McIver said Thursday.

“You can’t reasonably expect teachers and other staff and schools to show up without getting paid, and as we hire more teachers and staff for the schools we’re building, those costs will go up. I think it’s completely responsible to reflect that in the property tax levy.”