The City is phasing out the business tax through a gradual transfer of the business tax revenues to the non-residential property tax. Each year, business tax bills will go down and non-residential property taxes will increase. The business tax will be eliminated in 2019.
Consolidating the taxes into a single, easy to understand real estate-based assessment and tax system for non-residential property owners will make Calgary more competitive and attractive for business.
Business tax consolidation will not impact your property/business assessment and won’t be reflected on your assessment notice. It will not increase the amount of revenues collected by The City.
2017 tax impacts
Business owners will see an approximate 20 per cent decrease in the 2017 business tax rate. The tax change effects from business tax consolidation will be reflected in the taxes owing – meaning your business tax bill will decrease. The City will mail the 2017 business tax bills in February.
The tax rate consolidation process reduces the 2017 business tax rate 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 an increase to their property tax. Non-residential property taxes are affected by annual re-assessment shifts and annual municipal and provincial tax rate adjustments. The provincial portion of the tax rate isn’t announced until spring.
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.
Where can I find more information?
A variety of tools and resources are available on the Business Tax Consolidation page or call 403-268-2888.