Doing the math on property tax hike
By Lethbridge Herald on December 2, 2022.
Editor:
I thought I would shed some light on the year-over-year tax increase of 5.1 per cent.
I calculated what the change would compute to be in four applications of the indicated increase.
I am sure the council and most who understand the principle of compound interest, understand that each year the increase is applied to the amount including the increases from the year before. I used $1,000 as a base figure and of course we can see the first application of the increase would be $51 on that $1,000, (or on every $1,000 of your 2022 property tax).
Apply the increase four consecutive times and that beginning $1,000 grows to $1,220.43. If your last city tax bill for example was $3,000 in 2022 your tax bill will be $3,661.29 in 2026.
As a former mathematics teacher I felt that putting the information in numbers would help people know what to expect. I hope this helps clarify how the increases will work.
Joan Haig
Lethbridge
9-8
Thanks Joan, have long suspected that City council doesn’t understand the basic principle that 5.1% on this years bill will be added to next years bill which will be the started point for year two’s 5.1% increase.