Property taxes in Town of the Blue Mountains are likely to increase around two per cent this year.

Mayor Ellen Anderson says the numbers will be finalized later in February but the draft budget proposes a hike of 1.5 to 2 per cent for 2011.

For local taxpayers, that means a home assessed at 300 thousand dollars will go up 46 dollars a year in property taxes.

Grey county taxes and education taxes are also likely to increase about two per cent this year.

However, Mayor Anderson warns 2012 could be another story.

Next year, Blue Mountains starts paying for an expansion of its' landfill site and taxes are likely to jump about 6 per cent.