Medicine Hat city council approves tax rate bylaw while debating tax penalty changes on Monday

Cocks followed up, saying, “I support this. I supported the amendments, and I support the second reading of the Tax By-law as amended, endorsing the 4.9% increase.”

The approved rate will result in an estimated $115 annual increase for the average single-family home, or about $9.58 per month. With the provincial education tax adding about $82 per year, the total annual increase felt will be closer to $200.

To offset the lower rate, the council also approved a $1.1 million budget amendment to be funded through anticipated cost savings or operating reserves.

Cocks also mentioned in a discussion that the city had held the line on tax increases during the COVID-19 pandemic, which contributed to the current financial pressures.

Council also considered a bylaw to increase tax penalty rates, but the proposal was ultimately defeated.

The amendment would have raised penalties on unpaid taxes from 15 percent to 15.5 percent in 2027 and 16 percent in 2028, aligning rates more closely with other municipalities of a similar size.

Administration said the increase would help cover rising administrative costs and encourage timely payments, while generating roughly $40,000 annually.

Councillor Ted Clugston said the proposed increase “drives me nuts,” noting council has steadily raised penalties in recent years under the justification of cost recovery.

Clugston debated that the charges are too high and compared them to credit card interest rates, stating that a 15.5 percent penalty places an unfair burden on residents already struggling, while also saying the issue is not cost recovery but profit, and opposing any further increases.

Continuing with unfinished business, the council gave final approval to a tax certificate and information fees bylaw, setting updated fees for 2027 and 2028 to reflect administrative costs associated with issuing property tax certificates.

A separate bylaw updating the city’s unpaid general accounts process was also passed.

The change aligns penalty timing with new accounts receivable software, applying penalties based on invoice due dates rather than mailing dates.

Administration said the update will give customers more time to pay and better match common billing practices.

The council also received a presentation for information on the 2026 Community Survey, which found a broadly improved and more positive sentiment compared to previous years.

Results indicated that residents expressed higher overall satisfaction while still identifying ongoing service pressures and key areas for improvement, suggesting a general upward trend in community outlook despite continued concerns.

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READ: Medicine Hat City Council expected to set 2026 property tax rate on Monday

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The full meeting can be viewed on the Medicine Hat City Council’s YouTube Stream

by Jett Schwaier

Medicine Hat city council approves tax rate bylaw while debating tax penalty changes on Monday

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