When Calgary business owners receive their 2017 business tax bills they will see a decrease of about 20 per cent in the business tax rate. Tax bills for over 26,000 businesses were mailed in early February.
The decrease in the 2017 business tax rate is the result of business tax consolidation.
Phasing out business taxes
The City is phasing out the business tax through a gradual transfer of revenues collected through business tax to the non-residential property tax base, said Nelson Karpa, Director of Assessment for The City of Calgary. Each year the business tax will decrease and non-residential property tax will increase, with the business tax eliminated in 2019. Consolidating the taxes into a single, easy to understand, real estate-based assessment and tax system will make Calgary more competitive and attractive for business.
Business tax consolidation does not increase the amount of revenue collected by The City and does not impact assessments.
Property tax bills mailed at the end of May
The business tax consolidation process reduces the 2017 business tax rate by 20 per cent, while increasing the 2017 non-residential property tax rate by an additional 4.6 per cent. When the 2017 property tax bills are mailed at the end of May, non-residential property owners will see that increase in their property tax resulting from the business tax consolidation.
If you are a tenant, you may see the increase in the property tax being passed onto you by your landlord.
It is important to remember that your business tax reduction in March may offset the increase in June.
Annual business tax impacts will vary based on changes to your business premises.
Business owners who have not received their business tax bill by February 10 should contact 311 to obtain a copy of their bill.
Business taxes are due on Friday, March 31. A late payment penalty of 7 per cent will be applied to any unpaid portion of the business tax balance for the current year on April 1 and July 1.
The business tax deadline does not apply to business owners who pay monthly through The City’s Business Tax Instalment Payment Plan (BTIPP). Business owners can join BTIPP by visting the Business Tax Instalment Payment Plan page to request an agreement or by calling 311.
Non-residential tax increases capped at 5%
Non-residential property taxes are also affected by shifts in annually assessed property values, the municipal property tax rate, and the provincial property tax requisition. City Council recently approved the Municipal Non-residential Phased Tax Program that will limit the increase in municipal non-residential property taxes due to the shift in assessed property values to no more than 5% in 2017 (not including the effect of Business Tax Consolidation). The Alberta Government will set the provincial property tax rate in the Spring 2017.
Learn more about how The City is phasing out the business tax on the Business Tax Consolidation page or call 403-268-2888.