Business and residential property owners in a Community Revitalization Levy (CRL) area may ask if they pay higher property taxes. The answer is no, they do not. Owning property in a CRL area does not change the total amounts collected in municipal taxes or provincial education property taxes. The tax bill for property located in a CRL area is the same as it would be if the property was located outside a CRL area.
The difference is in the allocation of a portion of the property tax revenue. With a CRL, a portion of the property tax revenue generated by properties within the area is allocated to fund the area’s municipal development projects and infrastructure improvements.
When property values within a CRL increase as a result of new economic growth and development in the area, the taxes arising from these increased values are allocated to paying the costs of improvements. In this way, the general property taxes in the rest of the city do not pay for new public amenities or infrastructure within the CRL area.
CRL Areas in Edmonton
How the CRL Works
- Your property assessment as of December 31 of the year your CRL is approved is the baseline assessment. Current and future municipal taxes on this baseline assessment are used to fund City services throughout Edmonton.
- Future municipal taxes and provincial education taxes resulting from increased property assessment will go directly to paying off the money borrowed to invest in your area.
- In 20 years, or when the CRL loan is paid, all municipal taxes from your area will again be used to fund City services throughout Edmonton.
Assessment and Tax Notices in CRL Areas
Assessment notices for properties within CRL areas include additional information. The assessment notice will identify a baseline assessment (property taxes on this amount go towards the general tax base) and an incremental assessment (property taxes on this amount go towards the CRL).
The baseline assessment is the taxable (for municipal tax and/or provincial education tax) assessed value of the property as of December 31 in the year the CRL is approved by the province. This baseline assessment amount will remain unchanged for the duration of the CRL (up to 20 years).
The incremental assessment is the increase in taxable assessed value above the baseline assessment amount. The incremental assessment will change over time, with the market value of the property. Any municipal infrastructure improvements within a CRL area are funded by the property taxes on the incremental assessment values of all properties within the CRL area.