For purposes of taxation, Assessment annually prepares, communicates and defends business assessments using a typical net rental value standard.
Who is assessed?
In most situations, any person who operates a business in premises within the city will be assessed for business tax purposes, regardless of whether one rents, leases or owns the space. A person having a lease may choose to sublet certain areas to another business. Generally, the head lessee will be assessed and taxed for the entire area.
How we assess your business
To estimate the typical net annual rental value of various types of business premises, The City’s Assessment business unit collects and maintains market rental information for business premises.
Formal information requests are mailed to property owners and property managers each year. Assessment staff may also conduct interviews with landlords and business tenants.
Assessors analyze the net annual rents for various types of premises, based on the market valuation date of July 1, 2012. Factors or attributes used to determine the typical net annual rental for premises are those usually recognized by the business rental market, such as the size, type and quality of space, location, etc. Typical leasehold improvement allowances, recognized in the real estate rental market, are excluded from the typical net annual rental rate.
From assessor analysis, a typical net annual rental rate for each business premises is established. The typical net annual rental rate is expressed as either a rate per square foot or a rate per unit. The business assessment is determined by multiplying the area or number of units of the business premises used in connection with the business by the typical net annual rental rate per square foot or rate per unit for the type of premises.
Business assessment Area or Typical net annual (typical net annual = number x rental rate per rental value) of units square foot or unit
Changing your premises
Changes to your business premises may impact your assessment and your taxes. It’s your responsibility to advise The City of Calgary promptly if you:
- Begin or cease to operate a business.
- Move into new premises or open new premises or branches of an existing business. Increase or decrease the space of the premises occupied
- or used.
- Operate a business for a temporary period.
Contact Assessment at 403-268-2888 when the following changes to your premises. Additionally, contact The City of Calgary's Business Registry area at 403-268-5311 or by e-mail at email@example.com regarding any of the following changes:
- Selling a business
- Moving a business
- Closing a business
- Trade Name Change
- Business mailing address change
- Business ownership name change*
*Supporting Corporate Registry documents must be provided.
Please include an explanation of the change and all supporting Corporate Registry documents.
How business assessment relates to taxes
How your assessment relates to your taxes
Council decides what budget The City needs in the coming year. Then, using the total city-wide assessed business base, Council sets the tax rate to bring in only the funds it needs from business tax.
Tax rate = City budgetary needs ÷ Total assessed value of all Calgary businesses
Your assessment is the typical net annual rental value of your premises.
Assessment = Typical net annual rental value
Your share is calculated according to the assessed value of your premises. The assessed value shown on the Business Assessment Notice is multiplied by the business tax rate as set by City Council for that year. The result of this calculation is the individual business tax for a particular business premises.
Individual business tax = Business assessment x Business tax rate
Business Tax Exemptions
The City of Calgary recognizes the valuable societal contribution of business owners by including in its Business Tax Bylaw specific classes of business that are eligible for exemption from business taxes. Visit calgary.ca/btc for information about how to apply for an exemption.
Business Taxes Support
What your business taxes support Business taxes support the delivery of key Cityservices that sustain our vibrant, healthy city and great communities, including transit, protective services, land use planning and policy, recreation, parks and many others.
For information on revenue neutral and how it impacts Business assessments, view the Revenue Neutral