What is business tax? How do you calculate business tax?
Why am I being charged business tax when my business hasn't had a chance to make any money yet?
How are business tax penalties calculated?
How do I find out what business taxes will be at a location I am thinking of using?
What is business tax? How do you calculate business tax?
Business tax is levied on premises occupied for the purpose of conducting a business. It does not reflect a specific type of business or how profitable the business is.
The assessed value shown on your assessment notice is multiplied by the tax rate resulting in the business tax levy. The business tax rate is set annually by City Council.
Assessed Value x Tax Rate = Tax Levy
Why am I being charged business tax when my business hasn't had a chance to make any money yet?
Business tax does not reflect the profitability of a business. It is levied on the space that is being used for business purposes and should be considered a part of the regular operating expenses of running a business within Calgary.
How are business tax penalties calculated?
In accordance with the 2012 Business Tax Bylaw (Bylaw No. 3M2012), penalties for late payment will be applied as follows:
- On April 1, a penalty of 7% of the unpaid current taxes will be added to the balance.
- On July 1, an additional penalty of 7% of the unpaid current taxes will be added to the balance.
Penalties on unpaid taxes from previous years accrue at 1% monthly, commencing January 1.
Penalty charges are a fixed percentage, not a daily interest charge.
How do I find out what business taxes will be at a location I am thinking of using?
Contact the Customer Service Centre at 3-1-1 for information on business sites within Calgary.
