Business tax rate drops 20 per cent in 2018

When Calgary business owners receive their 2018 business tax bills they will see a decrease of about 20 per cent in the business tax rate. Tax bills for over 26,000 businesses were mailed on February 9, 2018.

The decrease in the 2018 business tax rate is the result of busine​ss tax consolidation.

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Phasing out business taxes

The City is phasing out the business tax through a gradual transfer of revenues collected through business tax to the non-residential property tax base, said Harvey Fairfield, Director of Assessment for The City of Calgary. Each year the business tax will decrease and non-residential property tax will increase, with the business tax eliminated in 2019. Consolidating the taxes into a single, easy to understand, real estate-based assessment and tax system will make Calgary more competitive and attractive for business.

Business tax consolidation does not increase the amount of revenue collected by The City and does not impact assessments.

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Property tax bills mailed at the end of May

The business tax consolidation process reduces the 2018 business tax rate by 20 per cent, while increasing the 2018 non-residential property tax rate by an additional 4.6 per cent. When the 2018 property tax bills are mailed at the end of May, non-residential property owners will see that increase in their property tax resulting from the business tax consolidation.

If you are a tenant, you may see the increase in the property tax being passed onto you by your landlord.

It is important to remember that your business tax reduction in March may offset the increase in June.

Annual business tax impacts will vary based on changes to your business premises.

Business owners who have not received their business tax bill by February 15 should contact 311 to obtain a copy of their bill. 

Business taxes are due on Thursday, March 29. A late payment penalty of 7 per cent will be applied to any unpaid portion of the business tax balance for the current year on April 1 and July 1.

The business tax deadline does not apply to business owners who pay monthly through The City’s Business Tax Instalment Payment Plan (BTIPP).

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