Photo: Hanna had nearly $1.03 million in outstanding property taxes as of Aug. 31. After scheduled monthly payments, the town projects approximately $438,641 will remain outstanding at year-end. Rural Alberta Report - C. Bowman

Hanna’s outstanding property tax balance reached $1.03 million as of Aug. 31, an increase of nearly $74,000 from the same date last year.

Council reviewed the town’s 2026 Taxation Report during its Sept. 8 regular meeting and accepted it for information.

The report showed $1,029,782.09 remained outstanding when the Aug. 31 payment deadline passed, compared with $956,089.15 on Aug. 31, 2025. The balance includes delinquent taxes from 2024, arrears from 2025, current taxes, penalties and prepayments.

A four per cent penalty totalling $12,191.35 was applied Sept. 1 to the outstanding current tax levy.

However, a significant portion of the Aug. 31 balance is expected to be collected through the town’s monthly pre-authorized payment plan. The program includes 547 properties and collects a combined $148,037.72 each month.

Another $592,150.88 is expected through those plans by the end of December, leaving a projected year-end outstanding balance of $438,641.21. Other payments have also been received since the deadline and the town expects additional payments during September as property owners seek to avoid a second penalty on Oct. 1.

The projected year-end balance would be more than double the $185,363.82 outstanding at the end of 2025.

Year-end outstanding balances have increased annually, rising from $74,690.86 in 2022 to $109,883.70 in 2023 and $149,639.58 in 2024.

During the council discussion, administration attributed the increase to broader economic conditions and pressure on residents’ disposable income rather than one specific issue.

Administration also noted that approximately $25,000 to $30,000 in property cleanup costs had been added to one tax account, contributing to the overall amount owing.

The town follows a formal tax recovery process that includes notices and registered letters. Properties may proceed to a tax recovery auction after taxes remain unpaid for three years.

Administration said the town also works with property owners to establish payment agreements and help them bring their accounts back into good standing.

Letters will be mailed to property owners advising them of the balances owing as of Aug. 31.