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Municipal Non-Residential Phased Tax Program

The 2017 Municipal Non-Residential Phased Tax Program (PTP) is a one-year program that was put in place to assist non-residential properties impacted by large shifts in market value in 2017. Under the PTP, non-residential municipal tax increases will be limited to five per cent. The PTP credit is based on the 2017 revenue neutral tax rate as a result of the annual market value reassessment, prior to any municipal tax changes, provincial tax changes or the effects of business tax consolidation.

Approximately 6,000 non-residential property owners will benefit from this program with the expectation that the benefits will be passed on to individual businesses/tenants (in the form of less money in rent, lease payments, etc.)

The intent of the PTP is to "soften the blow" of municipal property tax increases. It does not eliminate the impact of tax increases in 2017 but rather assists those most impacted by the redistributive effect of the 2017 annual assessment process.

Program highlights

  • No application is required. The PTP will be applied to the 2017 non-residential property tax bill mailed at the end of May.
  • Residential property owners and business owners are not eligible for this program.
  • PTP will not impact the Council-approved tax rebate that applies to all non-residential and residential property accounts.
  • Regulated rate properties are not included in the PTP (e.g. Farm land and linear properties).
  • Annexed properties that are taxed as “Foothills” or “Rockyview” qualify for PTP under the same rules as Calgary properties.
  • Other exclusions apply – see below.
  • To estimate what your non-residential property would save under the PTP, if it is eligible, use the tax calculator.
  • Non-residential property owners that have filed a complaint with the Assessment Review Board (ARB) will not see the PTP credit on their property tax bill mailed at the end of May. Eligibility for PTP will be determined after the ARB makes a decision. To avoid a late payment penalty, the tax amount will need to be paid in full by the due date. If the property qualifies for the PTP after the ARB makes a decision, the tax account will be adjusted appropriately. For more information, see Taxes and Assessment Complaints.

To qualify

A property must:

  • Be non-residential.
  • Have a 2017 non-residential assessment class of 50% or higher.
  • Have a non-residential municipal tax increase of greater than five per cent from 2016 resulting from the 2017 annual assessment process and the redistribution of revenue neutral tax.
  • Have existed in 2016.
  • Have a tax status as “taxable”.
  • Have municipal non-residential property taxes in 2017 greater than $50.
  • The amount of the municipal non-residential tax to be phased in must exceed $25.

Exclusions

  • The PTP does NOT apply if a property's value increased due to:
    • Physical changes
    • External non-market impacts (zoning changes, servicing, remediation, change in tax status, factual corrections)
    • A supplementary assessment
    • A partial development assessment for 2017.
  • Non-residential properties that decrease in municipal property tax are not eligible for the PTP. Non-residential properties that increase, but less than five per cent, are not eligible for the PTP.
  • 2016 assessment values must be finalized for PTP to qualify.