City Council approves immediate tax relief for Calgary businesses
Calgary – Today, City Council approved $130.9 million in immediate tax relief for Calgary businesses that drive the Calgary economy and make this a world class city. The approved 2019 Municipal Non-Residential Phased Tax Program (PTP) has been developed to mitigate the increase in non-residential property taxes due to the redistributive effect of 2019 property assessments.
The 2019 PTP will result in a minimum 10 per cent reduction in municipal non-residential property taxes in 2019, (not including the effect of Business Tax Consolidation, Phased Tax Program credits received last year or properties that were subject to non-market changes like property upgrades and expansions).
It’s estimated that approximately 11,900 non-residential properties will benefit from the 2019 Municipal Phased Tax Program (PTP). It is expected that, in turn, a positive economic benefit will be realized by business tenants contained within the non-residential properties when the PTP credit is passed to tenants.
Council previously set aside one-time funding of $70.9 million to help business owners facing significant increases in property tax due to the decrease in market value of downtown non-residential properties that has been redistributed to other non-residential properties.
Today, Council directed a further budget reduction of $60 million to bring the total 2019 PTP relief program to $130.9 million. These funds will be directed to the 2019 municipal PTP and applied immediately to reduce 2019 non-residential property tax bills of eligible non-residential property owners. The additional $60 million reduction in the 2019 base budget will include reductions and/or elimination of programs, services, staffing positions and potential voluntary wage roll-backs that Council will approve in July.
In the meantime, The City will apply PTP credits to tax accounts of eligible non-residential property owners on a best efforts basis by June 28, 2019. There is no application process required. Non-residential property owners that pay monthly through the Tax Instalment Payment Plan (TIPP) will have their instalment recalculated and will be sent a letter notifying them of the reduced instalment amount that will go into effect Aug. 1.
Property owners who make one annual payment are required to pay the full amount of their property tax bill by the June 28 payment deadline to avoid a seven per cent penalty. Statements indicating the amount of the PTP credit will be issued and payments made to eligible non-residential accounts with an outstanding credit balance no later than July 31, 2019.
Non-residential property owners may visit calgary.ca/ptp after June 13, 2019 for information on eligibility and to calculate the approximate amount of credit they can expect. Property owners can also contact Assessment at 403-268-2888 Monday to Friday from 8 a.m. to 4:30 p.m. if they have questions regarding the 2019 PTP.
The City remains committed to making life better every day, responding to the needs of Calgarians and demonstrating that we are a well-run City. To support economic recovery, The City will focus on achieving these reductions along with the cost savings and efficiencies committed to in the One Calgary 2019-2022 Service Plans and Budgets. Council will also engage in discussions with the provincial government on tax and assessment reform.
Visit calgary.ca/ourfinances to learn more about the budget, where your property taxes go to support the delivery of services, assessment and the tax shift, and the property tax process. For information on initiatives underway to deliver value for citizens and support economic recovery visit calgary.ca/deliveringvalue.