Tackling the tax shift together
Understanding the need for business tax relief
Businesses are vital in job creation and in creating vibrancy in our communities. Since 2015 the steep and rapid decline in the market value of a small number of high valued downtown properties resulted in a redistribution of property taxes ($250 million from 2015-2018) to other non-residential properties, causing untenable property tax increases for some property owners who were located outside the downtown core, many of whom are, or lease space to, small business owners.
Office towers in the core provided 32 per cent of the total non-residential property tax revenue in 2015. In 2019, provides only 18 per cent.
Phased Tax Program for businesses
To support businesses and our local economy, City Council has provided a total of $213 million in one-time property tax relief to eligible non-residential properties that received the most significant municipal tax increases over the past four years. The Municipal Non-Residential Phased Tax Programs (PTP) have been one-time tax relief measures, but businesses needed a more permanent action or they would be facing large increases when the one-time property tax relief ended.
- Council approved $30 million in tax relief in 2020 that will benefit up to 5,000 non-residential property owners by capping their municipal tax increase to 10 per cent of their 2019 amount.
Long-term support for businesses and our local economy
While the Phase Tax Program provided immediate relief over the last four years, long-term solutions were needed to support businesses and our local economy. Council has supported reducing the distribution of municipal tax for non-residential properties over-time and shifted some of the tax responsibility in 2019. While the typical Calgary household will see a small increase in their property tax bill, the shift will help keep businesses open, create jobs for Calgarians and supporting our local economy.
Learn more on our municipal tax shift page.