If you want to be able to sell your home or office, you might want to look at how to collect rent from the City of Edmonton.
In recent years, the city has started charging people rent in addition to property taxes.
The city now collects a “rental tax” for homes, offices, and businesses that are managed by a municipal corporation or a city department.
That money is used to pay for things like repairs, upgrades, utilities, and maintenance.
The tax collected from the city is used primarily to pay off the debt of existing owners, said Mike Laidlaw, a spokesperson for the city.
“The tax goes to pay back the debt and to support the upkeep and operation of the city services and infrastructure.”
Laidlaw said the city collects this tax to pay down the city’s operating debt, and in some cases, it also helps pay off past expenses.
He said the amount collected for the “rent tax” is a relatively small amount, ranging from $250 to $1,200 a year.
In the past, the “tax” was collected every six months or so.
But in 2016, the province dropped the amount of the tax and the city stopped collecting it.
Laidaw said there are several reasons for that.
One, the government doesn’t want to spend a lot of money on a system that relies on a lot more than a few years of experience and expertise.
Two, the tax is only collected once a year, and not on the last business day of each calendar year.
Three, the City’s budget for the next fiscal year will be about $3 million.
“This is something we’re trying to address,” said Laidaw.
Lentlaw said it’s not clear how much the city will be able buy back with the tax, but he said there could be some incentives to make more money through incentives programs.
“There’s a number of programs that we have that we can offer to help companies make more capital available to us,” said Lea.
Laying off a staff member from a company that’s moving to Edmonton and has to pay rent on top of the property taxes might be an incentive, but the city said it has not been approached for any specific incentives.
“We’re not in a position to offer any,” said Mike Lea, the spokesperson for city.
Lays said the City is also looking at offering incentives to encourage more companies to invest in Edmonton.
The City is currently paying out $1.7 million in rent subsidies to companies that have moved into the city, but it will not offer incentives for the remaining tenants.
The province also says the city should collect the “property tax” every six to 12 months.
In 2016, that cost totaled about $1 million a year in rent, according to a city report.
“Property taxes should be collected once every six or 12 months, but there are some exceptions,” said Andrew MacDonald, the director of revenue services for the province.
“If the property tax is collected on a regular basis and the property owner pays for the costs of the services that are provided by the municipality, then it can be collected twice, but that is not a requirement,” MacDonald said.
“So, if the property is vacant and the owner wants to continue to occupy it, the municipality can provide services for a period of time.”
MacDonald said there is no limit on the amount that the city can collect, but said it could not guarantee the amount it collects every six month.
Lotte said there’s no reason why it can’t collect the property’s rent annually.
She said she believes the city doesn’t know how many companies are currently paying rent for properties in Edmonton because of the way the city manages its property records.
“I think that’s the biggest misconception out there,” she said.
But MacDonald said the province is aware of the problem.
“That’s one of the things we’re going to do in the next couple of years, which is we’re looking at ways to make sure that companies don’t have to pay property taxes on their buildings every six years,” he said.