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The City of Calgary and The Government of Alberta's Non-Residential Property Tax Deferral

The Province’s Non-residential Property Tax Deferral program requires all Alberta municipalities to delay the collection of six-months’ worth of the property tax we collect on behalf of the Government of Alberta. The tax is deferred by not applying a penalty on the Province’s portion of your tax bill until after September 30, 2020.

It is important to note: The Province defines the six-month deferral period as April through September. The program does not defer the collection of the Province’s portion for six calendar months from the property tax bill’s due date.

In response to the impacts of COVID-19 Calgary’s City Council has waived the annual July 1 late payment penalty of 7% and amended the October 1 7% penalty to 3.5% for 2020. By waiving the July 1 penalty and delaying the application of penalty until October 1 on both the Province’s and The City’s portion of the 2020 property tax for all properties The City of Calgary is exceeding the deferral requirement.

What does this mean for non-residential property owners or for those whose property's assessment includes a portion of the non-residential property class?

If you pay your property tax bill annually and do not participate in the Tax Instalment Payment Plan (TIPP)

Information relevant to the deferral program shown on your annual 2020 property tax bill:

  • The bill due date of June 30.
  • The “Property Tax to the City” and “Property Tax to the Province” calculations and amounts payable, related to values assessed as non-residential.
  • For properties in The Rivers District, the “Community Revitalization Levy” calculations and amount(s) related to values assessed as non-residential.
  • Total Tax Amount Due 2020/06/30

Your 2020 property tax bill will not display a Non-Residential Property Tax Deferral credit amount if you pay your property tax annually.

The tax bill due date remains June 30. By extending the penalty-free period from July 1 to September 30 we are providing tax deferral on both the non-residential property tax we collect on behalf of the Government of Alberta and also The City’s non-residential tax portion. The property tax is deferred without a credit being applied to your tax account or being shown on your tax bill.

For those facing financial hardship due to COVID-19, payments made on or before September 30 will avoid the late payment penalty of 3.5% on October 1. Any unpaid 2020 property tax balance outstanding on October 1 will have the 3.5% penalty applied. Any unpaid tax and penalties accrued from previous years are charged a penalty of 1% of the outstanding balance on the first day of each month until the tax arrears are paid.

If you pay your property tax monthly through the Tax Instalment Payment Plan (TIPP).

To meet the requirements of the Province’s Non-Residential Property Tax Deferral program The City is prohibited from including the Province’s tax portion in the TIPP monthly instalment amount during the six-month deferral period, April through September.

A continued monthly instalment for the payment of the City’s tax portion from April – September is not prohibited under the program. While participating in TIPP your instalments continue the first day of every month without interruption. While TIPP does not stop in April and restart in October, the instalment amounts will change more often to comply with the deferral program.

To reduce your monthly payment amount by the Provincial portion from April to September The City needs to administer the deferral in three (3) stages:

Stage Three

Reinstate the deferred tax amount owing, to be paid over your October to December instalments.

The deferral period of the Provincial property tax ends September 30 for all non-residential properties, regardless of payment method. The deferred tax remains due in 2020.

To align the payment of the deferred tax amount within TIPP’s 12 monthly instalments after the deferral period ends September 30, we will add the full amount of your 2020 “Provincial Tax Deferral” (as was shown on your tax bill in May) back onto your tax account.

The reinstated Provincial tax will be added to your tax account at the end of August and your October, November and December instalments will be increased to collect that deferred tax amount. In other words, the full reinstated deferred tax amount will be collected as part of your three (3) remaining monthly instalments in 2020.

A statement of account will be mailed in late August showing deferral reversal and your revised/increased instalment amount starting October 1.

Stage One

Reduce the April to June instalment amount – done in March before the April withdrawal.

Your April – June instalments were reduced to equal one month’s worth of the estimated City’s portion of this year’s tax, for each of the three months. The monthly Provincial non-residential property tax amount and any estimated local improvement charges (if applicable) were not included in your monthly payment, if that adjustment reduced your instalment amount for April, May and June.

If that calculation would have caused an increase to your monthly instalment amount it was not changed. Your April, May and June monthly amount were kept the same as your March instalment amount.

The Provincial Tax Deferral program applies to only non-residential properties. For properties with more than one property class i.e. residential/non-residential the Provincial tax amount for only the non-residential portion was deferred from April to June.

Stage Two

Exclude the Province’s tax portion from July to September instalment amount and how this is reflected on your tax bill.

A “Provincial Tax Deferral – credit” equal to the full amount of your 2020 “Property Tax to the Province” related to values assessed as non-residential will be applied to your tax account before the annual instalment calculation for July 1, meaning the deferral credit is divided by six (6) instalments, July to December.

Information relevant to the deferral shown on your annual 2020 TIPP property tax bill:

  • Opening Balance (including TIPP payments to date).
  • The “Property Tax to the City” and “Property Tax to the Province” calculations / amounts payable, related to values assessed as non-residential.
  • “Provincial Tax Deferral -credit” – this amount is equal to the “Property Tax to the Province”, related to values assessed as non-residential. For properties with more than one property class i.e. residential/non-residential, the Provincial tax amount for only the non-residential portion is deferred.
  • Tax Balance amount, noting that it is “Not a Request for Payment”.
  • Revised instalment effective 2020 July 01. The deferral credit becomes part of the annual instalment calculation for July 1, meaning at this stage the deferral credit is divided by six (6) instalments, July to December.

Note for non-residential properties in The Rivers District CRL paying through TIPP:
The Provincial Tax Deferral amount on your 2020 TIPP property tax bill will be equal to the baseline non-residential “Property Tax to the Province” plus the increment non-residential value multiplied by the non-residential Provincial property tax rate. This makes your non-residential deferral credit amount the same as it would have been if your property was outside of the district.

For illustration purposes only. Below is an example of the three (3) changes in the 2020 instalment amount attributed to the Provincial property tax deferral only.

In this example: Assessed 100% non-residential property, based on The City’s tax portion (reduced by the 2020 one-time City’s tax rebate) and Provincial tax proportion only. These amounts do not reflect any potential 2020 phased-in tax credit or any local improvement charges.

Instalment Month Instalment Amount  
Instalment Month: Jan Instalment Amount: $ (5,873.00) Based on 2019 property tax levy / 12 months.
Instalment Month: Feb Instalment Amount: $ (5,873.00)
Instalment Month: Mar Instalment Amount: $ (5,873.00)
Instalment Month: Stage 1
Instalment Month: Apr Instalment Amount: $(4,231.00) Monthly amount revised to equal estimated 2020 City tax only.
Provincial tax amount removed from the calculation to meet the deferral requirement.
Instalment Month: May Instalment Amount: $(4,231.00)
Instalment Month: Jun Instalment Amount: $(4,231.00)
Instalment Month: Stage 2
Instalment Month: Jul Instalment Amount: $(3,409.00) Actual 2020 City tax + Provincial tax, total tax levy $63,073.73
Minus the 2020 City tax rebate ($677.30)
Minus Provincial Tax Deferral credit ($11, 633.38)
Minus payments to-date (Jan to Jun) totaling ($30,312)

Total / 6 = July to December instalment amount
Instalment Month: Aug Instalment Amount: $(3,409.00)
Instalment Month: Sep Instalment Amount: $(3,409.00)
Instalment Month: Stage 3
Instalment Month: Oct Instalment Amount: $(7,286.00) Deferred Provincial tax of $11,663.38 is added back into the tax payable/owing for 2020.
Outstanding tax amount including Provincial tax amount/3 = October to December instalment amount.
Instalment adjusted to pay out by year-end.
Instalment Month: Nov Instalment Amount: $(7,286.00)
Instalment Month: Dec Instalment Amount: $(7,286.00)
Instalment Month: Instalment Amount: $(62,396.43) Total 2020 payments made.
Instalment Month: Instalment Amount: $62,396.43 Total 2020 property tax payable (after 2020 one-time City tax rebate).

Frequently asked questions

What if I want to decline the tax deferral to keep my instalments higher but steady for July – December?

  • Please wait to make your request to forego the provincial tax portion deferral until you have received your 2020 TIPP property tax bill by the first week of June.
  • Enclosed with your bill you will find a letter outlining how to make your request.
  • By following the instructions in that letter we will be able to capture and track all requests of this nature, allowing us to streamline the process and provide the best service possible for all who choose this option.

We appreciate your patience as we work to implement this newly created program.

For illustration purposes only. This example illustrates the change to your 2020 instalment amounts should you choose to decline the Provincial property tax deferral and keep your instalments consistent from July to December.

In this example: Assessed 100% non-residential property, based on The City’s tax portion (reduced by the 2020 one-time City’s tax rebate) and Provincial tax portion only. These amounts do not reflect any potential 2020 phased-in tax credit or any local improvement charges.

​Instalment Month ​Instalment Amount ​Requests to decline the Provincial Tax Deferral to keep instalments consistent July-December 2020. Request received by The City on or before June 22 to allow for July 1 amount to be adjusted before your July 1 instalment is withdrawn from your chequing account.
Instalment Month: ​Jan Instalment Amount: ​$ (5,873.00) Requests to decline the Provincial Tax Deferral to keep instalments consistent July-December 2020. Request received by The City on or before June 22 to allow for July 1 amount to be adjusted before your July 1 instalment is withdrawn from your chequing account.: ​​Based on 2019 property tax levy / 12 months. ​ ​
Instalment Month: ​Feb Instalment Amount: ​$ (5,873.00)
Instalment Month: ​Mar Instalment Amount: ​$ (5,873.00)
Instalment Month: ​​Stage 1 ​ ​
Instalment Month: ​Apr Instalment Amount: ​$ (4,231.00) Requests to decline the Provincial Tax Deferral to keep instalments consistent July-December 2020. Request received by The City on or before June 22 to allow for July 1 amount to be adjusted before your July 1 instalment is withdrawn from your chequing account.: ​​​Monthly amount revised to equal estimated 2020 City tax only.
Provincial tax amount removed from the calculation to meet the deferal requirement. ​ ​
Instalment Month: ​May Instalment Amount: ​​$ (4,231.00)
Instalment Month: ​Jun Instalment Amount: ​​$ (4,231.00)
Instalment Month: ​​Requests to decline the Provincial Tax Deferral ​ ​
Instalment Month: ​Jul Instalment Amount: ​$ (5,348.00) Requests to decline the Provincial Tax Deferral to keep instalments consistent July-December 2020. Request received by The City on or before June 22 to allow for July 1 amount to be adjusted before your July 1 instalment is withdrawn from your chequing account.: ​​​​​​Actual 2020 City + Provincial tax, total tax levy $63,073.73
Minus the 2020 City tax rebate ($677.30)
Minus payments to-date (Jan to Jun) totaling ($30,312)

Total / 6 = July to Dec instalment amount ​ ​ ​ ​ ​
Instalment Month: ​Aug Instalment Amount: ​​$ (5,348.00)
Instalment Month: ​Sep Instalment Amount: ​​$ (5,348.00)
Instalment Month: ​Oct Instalment Amount: ​​$ (5,348.00)
Instalment Month: ​Nov Instalment Amount: ​​$ (5,348.00)
Instalment Month: ​Dec Instalment Amount: ​$ (5,344.43)
Instalment Month: Instalment Amount: ​$ (62,393.43) Requests to decline the Provincial Tax Deferral to keep instalments consistent July-December 2020. Request received by The City on or before June 22 to allow for July 1 amount to be adjusted before your July 1 instalment is withdrawn from your chequing account.: ​Total 2020 payments made

What if I’m on TIPP but not able to continue the plan as the result of financial hardship due to COVID-19?

If you’re not able to continue on the payment plan at the required instalment amount you will need to cancel your participation. We’re not able to modify your monthly instalment to an amount different than the instalment set by the plan’s terms and conditions.

To cancel your participation in TIPP use our online secure form to submit your cancellation request. 

Be aware the deadline to submit your cancellation request is no later than the 22nd of the month in order to cancel TIPP before the upcoming instalment is withdrawn from your bank account.

For those facing financial hardship due to COVID-19, payments made on or before September 30 will avoid the late payment penalty of 3.5% on October 1. Any unpaid 2020 property tax balance outstanding on October 1 will have the 3.5% penalty applied.

Important – Cancelling TIPP after June 1:

As the result of cancelling TIPP after June 1, we will add the “Provincial Tax Deferral” amount back onto your tax account and mail you a statement showing your revised account balance to be paid on or before September 30 to avoid the late payment penalty of 3.5% on October 1.

Council has delayed the application of penalty until October 1 on both the Province’s and The City’s portion of the 2020 property tax for all properties, so the addition of the deferral amount back onto your tax account means you will be receiving the same tax deferral as all property owners who pay their tax bill annually.

For those facing financial hardship due to COVID-19, payments made on or before September 30 will avoid the late payment penalty of 3.5% on October 1. Any unpaid 2020 property tax balance outstanding on October 1 will have the 3.5% penalty applied. 

Can I cancel TIPP and rejoin the plan later in 2020? What do I need to know about joining again later this year?

Yes, you are able to rejoin TIPP later in 2020. Normally joining TIPP twice in the same calendar year for the same property is prohibited under the terms of the plan; however, one of the tax relief measures adopted by Council in response to COVID-19 is to waive the 2% filing fee for 2020. This allows you to rejoin later this year without the filing fee.

You will need to request and submit a new TIPP agreement along with your banking information as we are not able to use your previous TIPP agreement and banking information to restart you on the plan. Also be aware that at the time of rejoining any missed instalments must be paid in full as an initial payment for us to process your new agreement.

To make the deadline to start TIPP request your agreement early. Your completed agreement and your initial payment must be received on or before the 22nd of the month before your plan “start month”.

For example: if you want to start the plan October 1, we require your completed agreement, banking information returned to us and your initial payment to be made on or before September 22. Your initial payment must appear on your property tax account before we can restart your TIPP participation.

We strongly recommend requesting your new agreement early even if you’d like to join the plan later this year.

You will specify the month you’d like to join the plan when you request your agreement; however, be aware if you restart your participation later than October 1 any unpaid 2020 tax balance as of October 1 will have a late payment penalty of 3.5% applied.

If starting the plan October 1, your agreement will include the 3.5% October 1 penalty. This is not an error. The penalty amount will be waived after you have submitted a correctly completed agreement, made your initial payment and your first instalment has been withdrawn from your chequing account. If you do not meet these terms and conditions of the plan you are not on TIPP and the October 1 penalty will not be waived.

For illustration purposes only. This example illustrates the October – December instalment amounts and initial payment amount required on or before September 22 to join TIPP again with an October 1 start date.

In this example: Assessed 100% non-residential property, based on The City’s tax portion (reduced by the 2020 one-time City’s tax rebate) and Provincial tax portion only. The tax amounts do not reflect any potential 2020 phased-in tax credit or any local improvement charges.

​Instalment Month ​Instalment Amount ​Cancels TIPP participation before April 1 instalment.
Initial payment required at the time the agreement is submitted.*
Instalment Month: ​Jan Instalment Amount: ​$ (5,873.00) Cancels TIPP participation before April 1 instalment.Initial payment required at the time the agreement is submitted.*: ​​​Based​ on 2019 property tax levy / 12 months. ​ ​
Instalment Month: ​Feb Instalment Amount: ​$ (5,873.00)
Instalment Month: ​Mar Instalment Amount: ​$ (5,873.00)
Instalment Month: ​Initial payment required by Sep 22* Instalment Amount: ​$ (33,588.00) Cancels TIPP participation before April 1 instalment.Initial payment required at the time the agreement is submitted.*: ​Actual 2020 City + Provincial tax, total tax levy $63,073.73
Minus the 2020 City tax rebate, ($677.30)
Minus payments to-date sum of ($17,619.00)

Total / 12 = monthly instalment ($3,732.00)

Initial payment required=monthly instalment x 9 months ** Jan - Sep ($33,588.00)

Initial payment must be made on or before September 22 to process your TIPP agreement tostart the plan October 1.
Instalment Month: ​Oct Instalment Amount: ​$ (3,732.00) Cancels TIPP participation before April 1 instalment.Initial payment required at the time the agreement is submitted.*:
Instalment Month: ​Nov Instalment Amount: ​​$ (3,732.00)​ Cancels TIPP participation before April 1 instalment.Initial payment required at the time the agreement is submitted.*:
Instalment Month: ​Dec Instalment Amount: $ (3,725.43)​ Cancels TIPP participation before April 1 instalment.Initial payment required at the time the agreement is submitted.*:
Instalment Month: Instalment Amount: ​$ (62,396.43) Cancels TIPP participation before April 1 instalment.Initial payment required at the time the agreement is submitted.*: ​Total 2020 payments made.
Instalment Month: Instalment Amount: ​$ 62,396.43 Cancels TIPP participation before April 1 instalment.Initial payment required at the time the agreement is submitted.*: ​Total 2020 property tax payable (after 2020 one-time City tax rebate).

**By cancelling TIPP before April 1, the Jan - Mar payments are not deemed to be monthly instalments. Those payments simply reduce this year's tax balance to be paid by 12 monthly instalments in 2020.