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OptionB

How should The City use $52 Million?

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Give business a break!

Reducing non-residential property taxes




Results

Citizen Feedback – Online & 311

In total 381 responses were provided for “Option B – Give Businesses a Break!” and 19 of those responses submitted did not provide likes or dislikes.

 

Response Themes – Online & 311

*Note: Themes are listed in order of frequency

Likes for Give Businesses a Break!

Dislikes for Give Businesses a Break!

Did not provide a likes response

 

Businesses already pay lower taxes/ don't need more breaks/ businesses should pay more taxes

Nothing

 

Did not provide a dislikes response

Lower the business tax

 

Does not have trickle-down benefits for citizens/consumers

It's a waste of money/ money could be better spent

The money should be given to taxpayers (not businesses)

Other

 

Little/ no impact on existing business market/economy

Encourages new innovators/ new businesses/ small business to invest in Calgary

 

Encourages growth of local businesses

 

Will only benefit (large) business owners/ a select few

It's not The City's money/ it's taxpayers' money

Should invest in Business because it creates employment

 

Won't be enough to affect/ attract (new) business

Other

Does not encourage businesses to reinvest in the community

Everything/ there's nothing to like

Allows Calgary-based businesses to stay competitive

 

Nothing

Lower overhead cost

 

Encourages businesses to reinvest in their communities

 

Lets help improve the economy

 

It the best option for Calgary

 

Don’t know

 

Pay/ lower the debt is a better option

Benefits employees (by providing adequate pay)

 

Sounds good/ great idea

 

Support diversity in the economy

 

Good for consumers (by lowering prices on products/ services)

 

Provides more/ long term tax revenue

 

Don’t know

Prefer one of the other spending options

Prefer to have funds distributed across multiple options

Citizen Feedback – Mall Engagement

In total 16 responses were provided for “Option B – Give Businesses a Break!”

 

Key Response Themes – Mall Engagement

*Note: Themes are listed in order of frequency

Likes for Give Businesses a Break!

Dislikes for Give Businesses a Break!

Businesses already pay lower taxes/ don't need more breaks/ businesses should pay more taxes

Other

Will only benefit (large) business owners/ a select few

Little/ no impact on existing business market/economy

Does not have trickle-down benefits for citizens/consumers

The money should be given to taxpayers (not businesses)

Does not encourage businesses to reinvest in the community

It's a waste of money/ money could be better spent

Encourages new innovators/ new businesses/ small business to invest in Calgary

 

Lower the business tax

 

Should invest in Business because it creates employment

 

The idea

The $52 million could be used to reduce the difference in tax rates between residential and non-residential properties. At the moment, non-residential properties (mostly commercial properties like stores and offices as well as industrial properties like factories) are taxed at a higher rate than residential properties: for every dollar of assessed value, a business pays 3.91 times as much as a homeowner does.

The problem it solves

While Calgary has the lowest residential municipal property taxes of any major city in Canada, our business tax rates are in the middle of the pack. Calgary is phasing out the stand-alone business tax, as most cities in Canada have done. This will be offset by increases to non-residential taxes, with the overall impact will being revenue-neutral.

A number of business organizations, including the Calgary Chamber of Commerce, believe that reducing the non-residential tax rate could make Calgary a more appealing place to do business, benefiting the city’s economy by attracting more people to live, work and play here. This would help to contribute to a healthy local economy and job creation.

How it would work

The exact mechanics of how to apply the $52 million to business taxes have not been finalized, but the money would reduce the differential from 3.91 to 3.67. In other words, for every $1.00 of residential property tax collected, $3.67 of non-residential property tax would be collected. ​​​​​​​​​​​​​​​​​​​​​​​​​

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