Council Approves new relief measures to support Citizens and businesses
The City of Calgary is taking action to support citizens and businesses in response to the COVID-19 pandemic. Today, Council approved the 2020 Property Tax Bylaws and additional relief measures to support taxpayers facing financial hardship.
Property tax bills will be mailed by the end of May 2020 however two new significant relief measures were approved to provide flexibility for taxpayers:
- The tax payment deadline has been extended from June 30 to September 30 without late payment penalties; and
- The Tax Installment Payment Plan (TIPP) has suspended its 2% filing fee for taxpayers who join TIPP after January 1, which has been suspended until January 1, 2021.
“The combination of the global oil price collapse and the measures to reduce the spread of COVID-19 are having an unprecedented impact on Calgarians. The City of Calgary is here for you,” said Mayor Nenshi. “The actions Council approved support citizens and businesses today, as we continue to analyze and consider additional measures for medium- and long-term recovery.”
Residential and non-residential taxpayers requiring support are encouraged to use the new tax relief measures to help ease their burden. Where possible, those who are able to pay their taxes on June 30 or continue their regular payment through TIPP are encouraged to do so. This will avoid larger payments later in the year, and will support essential services upon which all Calgarians rely.
The new relief measures introduced today are in addition to measures previously approved by Council:
- Nov. 19, 2019 - Use of one-time funding to maintain last year’s municipal tax rate for both residential and non-residential property owners.
- Nov. 19, 2019 - Shifting the tax responsibility from 49 per cent residential and 51 per cent non-residential, to 52 per cent residential and 48 per cent non-residential in order to provide support to businesses and non-residential property owners.
- In November 2019, Council approved 2020 budget adjustments in a thoughtful process that allowed the Calgary Police Service and Civic Partners to preserve their budgets, while taking a least harm approach in reducing some City services. Additionally, Council directed Administration to provide options for a transitional non-residential phased tax program for 2020 and 2021, as well as strategies and initiatives to achieve targeted budget reductions of $24 million in 2021 and $50 million in support of Calgary’s economic recovery.
- Feb. 3. 2020 - City Council approved $30 million in tax relief for Calgary businesses who have experienced the most significant municipal property tax increases over the past four years. Learn more about the 2020 Municipal Non-Res Phased Tax Program.
- Mar. 16, 2020 – Utility payment relief measures established including increased payment flexibility installment plans, extending payment dates and/or suspension of collection-related activities on their ENMAX and City of Calgary municipal services. Additionally, disconnection of electricity service for non-payment has been suspended until further notice
- Mar. 29,2020 – Business Improvement Areas late payments deferred from April 1 until June 30. For more information please visit: www.calgary.ca/covid-business
In addition to municipal taxes, municipalities collect taxes on behalf of the province. The combination of the municipal and provincial increases results in a combined increase to residential taxpayers of:
- 7.55 per cent or $240 per year ($20 per month) for the median assessed property of $455,000 after the Council rebate.
Excluding the impact of assessment changes and Phased Tax Program (PTP) rebates, non-residential taxpayers will see a combined decrease of:
- 12.07 per cent or $2,640 per $1 million of assessed value annually ($220 per month) after the Council rebate
Other assistance programs:
- Under The City’s Property Tax Assistance Program, residential property owners of any age may be eligible for a credit/grant of the increase on their property tax. Visit www.calgary.ca/ptap for more information or call 311.
- The City’s Fair Entry program – www.calgary.ca/fairentry
Measures announced by the Government of Alberta:
- Seniors may be eligible for provincial support. Visit www.seniors-housing.alberta.ca or call 1-877-644-9992 for more information.
- The Provincial portion of property tax rates will be frozen at last year’s level – reversing the 3.4 per cent population and inflation increase added in Budget 2020.
- Collection of non-residential education property tax for businesses will be deferred for six months.