Calgary, AB,
23
January
2017
|
21:06
America/Denver

Council caps municipal non-residential property tax increase

In response to the current economic downturn, The City of Calgary announced the Municipal Non-Residential Phased Tax Program. It will to assist non-residential property owners impacted by the tax redistribution caused by the drop in market value in the downtown core.

Through the Mid-Cycle Adjustments process Council approved total benefits to citizens and businesses of $183 million. The Municipal Non-Residential Phased Tax Program stems from Council’s direction to Administration to develop an additional program to assist Calgary businesses affected by the downturn.

Under this program, the 2017 non-residential municipal property tax increase will be phased in by limiting the increase in 2017 to five per cent, not including the effect of business tax consolidation or any provincial property tax requisition.

“Calgary is open for business,” said Mayor Naheed Nenshi. “We know times are tough, but our prudent fiscal management lets us help Calgary business when they need it most.”

It is expected that approximately 6,000 non-residential properties will benefit from the program. No application is required. The phased-in tax increase will be applied to the 2017 municipal non-residential tax bill going out in May. The goal of the program is to provide economic benefit to non-residential property owners greatly impacted by the 2017 assessment process. It is expected that in turn, a positive economic benefit will be realized by business tenants of the non-residential properties.

The cost of this one-time program is estimated to be $45 million, funded by a transfer from the Community Economic Resiliency Fund from intentional savings in 2016 Corporate Programs. It will have no impact on the Council-approved 1.5 per cent property tax rebate that applies to all non-residential and residential property accounts.

With the addition of the $45 million, the total benefits approved through the Mid-Cycle Adjustments process amount to $228 million. Of this, approximately $113 million in benefits is directed at municipal non-residential property owners.

Non-residential property owners are encouraged to use The City’s tax calculator to determine if they are eligible for the program and to view their estimated 2017 tax amount. The calculator will be updated to reflect the Phased Tax Program this week. Visit www.calgary.ca/ourfinances for more information.

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