The municipal non-residential property tax rate on businesses increased 20.6% from 2011 to 2016. Increases since 2014 have been aligned with the business tax consolidation and the tax rate set by council.
Source: The City of Calgary
FACT: The Business tax is being consolidated into the non-residential property tax.
Calgary businesses pay two forms of tax:
- Non-residential property taxes paid by property owners
- A business tax paid by all businesses in Calgary, based on the assessed value of a business, not the assessed value of a property.
After listening to the business community, including the Chamber of Commerce, The City of Calgary agreed to eliminate the business tax over five years in a revenue neutral manner. Beginning in 2014, the City began consolidating the business tax into non-residential property taxes. The full elimination of the business tax will occur in 2019.
FACT: The Mayor Nenshi and City Council froze the property tax rate for residences and businesses in the 2017 City budget. However, the assessed value of many properties - based entirely on fair market value - has shifted due to the sudden drop in the valuation of downtown commercial properties.
Mayor Nenshi and Council spearheaded two initiatives this year to help businesses address the shift in the value of the commercial real estate market:
- A $45 million fund was approved to cap the change in taxes based on market assessments from exceeding 5%. Source: The City of Calgary
Initiating an independent review of the appeals process for non-residential assessments to look at the fairness, transparency and predictability of the assessment system for commercial properties propose some recommended reforms.