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Business Tax Consolidation

To ensure Calgary’s assessment and tax system continues to improve in effectiveness, efficiency and transparency while enhancing Calgary’s economic competitiveness and attractiveness, The City implemented business tax consolidation (BTC).

BTC refers to the transferring of business tax revenues into non-residential property tax. This process will occur through incremental transfers over a seven-year period. The first transfer occurred in 2014 with 10 per cent of business tax revenues transferred to and collected through the non-residential property tax. The last transfer will occur in 2019, culminating with the elimination of the business tax.

BTC will result in The City having a single, easy-to-understand real estate-based assessment and tax system for non-residential property and business owners.

BTC will not impact your assessment, nor will it be reflected on your assessment notice.

Business Tax Consolidation - Tax Change Effects

​Year Business tax change Non-residential property tax changes
​2013 ​0% ​0%
​2014 ​-10% ​2.3%
​2015 ​-10% ​2.3%
​2016 ​-20% ​4.6%
​2017 ​-20% ​4.6%
​2018 ​-20% ​4.6%
​2019 ​-20% ​4.6%
​Total 100%​ 23.0%
The business tax, for business tax revenue purposes, will be eliminated in 2019.

Business Tax Consolidation Calculators

The tax calculators provided below are tools to assist non-residential property and business owners understand the effects of business tax consolidation on their property and business taxes. The information provided is a tax estimate. The annual tax implication will vary based on any change to property/premises details, annual reassessment shifts and/or annual tax rate adjustments made by Council. The City does not assume responsibility nor accept any liability arising from any reliance on the accuracy of a tax implication derived through the tax calculator.

To estimate possible changes to your property and/or business taxes over the next seven years, please select one of the following:

Property & business owner tax calculator 

You own both a business and the physical property in which the business is located.

Enter the value of your 2016 non-residential property assessment and the total value of ALL 2016 business assessment(s) for all of the business premises located on the property.

Tax Year Non-residential property tax Business tax Total tax levied on a property % change from original tax
2016
2017
2018
2019

Property owner tax calculator

You own physical property only.

Enter the 2016 value of your non-residential property assessment.

Tax Year Non-residential property tax Estimated business tax decline for tenants Cumulative business tax decline for tenants
2016 20% 40%
2017 20% 60%
2018 20% 80%
2019 20% 100%

Business owner tax calculator

You own a business only.

Enter the 2016 value of your business assessment for the premises.

Tax Year Business tax Estimated property tax increase for landlords Cumulative property tax increase for landlords
2016 4.6% 9.2%
2017 4.6% 13.8%
2018 4.6% 18.4%
2019 4.6% 23.0%

Explanation of terms in the calculators

Column Name ​Explanation
​Non-Residential Property tax The amount of tax on the property in 2015 and, for subsequent years, the amount of property tax that would be due based solely on the estimated tax shifts from business tax consolidation.
​Business tax ​The amount of tax on the business in 2015, and, for subsequent years, the amount of property tax that would be due based solely on the estimated tax shifts from business tax consolidation
​Total tax levied on the property ​The total property and business tax on the property and its business premises for 2015 and, for subsequent years, the total property and business tax that would be on the property and its premises based solely on estimated tax shifts due to consolidation
​% Change from original tax ​The per cent change in taxes on the property and business premises, based solely on the estimated tax shifts due to consolidation

Reference guide table and descriptions

​Consolidation feature ​0: 
2012
​1: 
2013
​2: 
2014
​3: 
2015
​4: 
2016
​5: 
2017
​6: 
2018
7: 
2019​
​Business tax amount transferred ​- ​0% ​10% ​10% ​20% ​20% ​20% ​20%
​Cumulative Business tax amount transferred ​- ​0% ​10% 20%​ ​40% ​60% ​80% 100%
​Non-residential Property tax rate change ​- ​0% ​2.3% ​2.3% ​4.6% ​4.6% ​4.6% ​4.6%
​Cumulative Non-Residential Property tax rate change ​- ​0% ​2.3% 4.6%​ ​9.2% 13.8% 18.4% 23.0%

Business tax amount transferred: The amount of tax currently collected through the business tax that will be transferred to, and collected through, the non-residential property tax in each year, as a percentage of the total.
 
Cumulative Business tax amount transferred: The amount of tax currently collected through the business tax that will be transferred to, and collected through, the non-residential property tax, as a cumulative percentage. This number also represents the per cent decrease in the amount of business tax collected. The decrease is shown in the "Business tax" column of the calculator.
 
Non-Residential Property Tax rate change: The estimated impact of the revenue transfers on the non-residential property tax rate. The effect of the changes can be seen in the "Non-Residential Property tax" column of the calculator.
 
Cumulative Non-Residential Property Tax rate change: The estimated cumulative impact of the revenue transfers on the non-residential property tax rate. The effect of the changes can be seen in the "% Change from original tax" column of the calculator.

BTC: A revenue neutral process

The consolidated business tax revenues will be subject to a zero per cent business tax rate increase and the consolidation process will be based on an approach that is revenue neutral  to The City of Calgary. Revenue neutral means The City will generate no more or no less revenues due to the transfer of business tax revenues to the non-residential property tax, and the effect of Council’s zero per cent business tax rate increase policy will continue to apply to the business tax amount transferred to the non-residential property tax.

The consolidated business tax revenues will be subject to a zero per cent business tax rate increase and the consolidation process will be based on an approach that is revenue neutral  to The City of Calgary. Revenue neutral means The City will generate no more or no less revenues due to the transfer of business tax revenues to the non-residential property tax, and the effect of Council’s zero per cent business tax rate increase policy will continue to apply to the business tax amount transferred to the non-residential property tax.

Exempt non-profit organizations 

If your organization is a non-profit organization that is exempt from business tax through the business tax bylaw, but not exempt from property tax, your organization will see a tax increase as a result of consolidation. Council has directed the implementation of a program to mitigate tax increases from consolidation for specific limited benefit non-profit organization and bingos.

Limited benefit non-profit organization

By the end of consolidation in 2019, organizations with a business tax exemption and no exemption from property tax will likely see an increase of up to 23 per cent in the total amount of property–based tax they pay due to consolidation (the amount of tax would increase 2.3 per cent in 2014 and 2015, 4.6 per cent in 2016 through 2019 for a total of 23 per cent over 2015 taxes). Any organization exempt from both property and business tax, for the space it occupies, would continue to be exempt from the non-residential property tax and would see no change.

City Council directed the implementation of mitigation for this increase for organizations that are exempt from business tax through the business tax bylaw. The program is a three year “no impact period” that would consist of:

  1. a zero per cent increase in 2013; and
  2. a property tax refund in 2014 and 2015 equal to the increased property tax amount due to consolidation for the properties, or portions thereof, occupied by non-profit organizations.

In 2016, the refund program will cease and the total tax increases due to consolidation for impacted organizations will occur incrementally over the remaining time frame. In their discussions with respect to the consolidation issue in April 2012, City Council directed City Administration to review, by way of a report to Council, mitigation options for limited benefit non-profit organizations.  After considering the  Report , Council passed a motion to receive the report for information on July 16, 2012 and confirmed their direction to implement the three year "no impact period."

To qualify for the program, your organization must have been listed in Attachment 2 of Report PFC2012-0139 or be approved by Council as part of annual report by Administration on the progress of Consolidation:

  • Be in existence on the day that consolidation was directed by Council (2012 April 09);
  • Meet the business tax exemption criteria in the Business Tax Bylaw on the date consolidation was directed by Council, and;
  • Apply before 2014 December 31.

The application time frame for this program has now closed. If your organization did not apply for the program, it is no longer eligible to receive any benefits under this program.

Frequently asked questions

Will non-residential property and business owners receive assessment notices and tax bills during the consolidation implementation period?

Yes. The City will continue to send property and business assessment notices and tax bills throughout the BTC period.

How will Business Revitalization Zones receive funding after the business taxes are eliminated in 2019?

The business assessment and business revitalization zone levy process will continue to be used until a suitable financing alternative is established.

How will business tax consolidation affect my property and/or business exemption?

By the end of consolidation in 2019, non-profit organizations with a business tax exemption but no exemption from property tax will likely see an increase of up to 28 per cent in the total amount of property–based tax they pay with increases occurring over the seven-year implementation time frame. City Council directed the implementation of a mitigation program for this increase for businesses that are exempt from business tax through the business tax bylaw. The program is a three year "no impact" period that would consist of:

  1. Zero per cent increase in 2013
  2. A property tax refund in 2014 and 2015 equal to the increased property tax amount due to consolidation for the properties, or portions thereof, occupied by non-profit organizations.

After the no impact period, the tax increases due to consolidation for business-tax exempt organizations will occur incrementally over the remaining time frame.

Supporting documentation

The report and amended recommendations were approved by Council on April 9, 2012.