Calgary council opts not to alter property tax split between homeowners and businesses
After a lot of debate, Calgary councillors narrowly decided Tuesday evening not to shift additional property tax burden from businesses to homeowners.
Council considered three options that would have put more cost onto homeowners and brought down taxes for businesses and commercial properties:
- Option A was to leave the tax share as is;
- Option B was to shift the tax share to 53 per cent residential and 47 per cent non-residential; and
- Option C was to move to a share of 54 per cent residential and 46 per cent non-residential.
The latter two options would have seen property tax on the typical single-family residential home valued at $555,000 increase by $4 per month or $8 per month, respectively.
If a property tax shift had been approved, the tax increase would have been in addition to the increases announced in late 2022 that will see the typical residential property in Calgary pay about $10 more per month.
In the end, council went with Option A and kept the tax split between residential and non-residential as is - 52 per cent for homeowners and 48 per cent for businesses.
The vote was 8-7.
Mayor Jyoti Gondek had wanted to ease the burden on commercial properties.
"I think we need to take some action to help small businesses," the mayor said.
"I can tell you that the Chamber has done some pretty good work in identifying that businesses with less than 20 staff, businesses that have been in operation for less than 10 years and businesses that are run by visible minorities are most in jeopardy if we don't take some action."
A typical business property valued at $5.1 million would have seen annual savings of nearly $2,000 with a one per cent tax shift and $3,900 with a two per cent tax shift.
"We know that small businesses are employers. We know that they're putting back and feeding their families and they're feeling pressures of the cost of living, just as we are as residents, but to a greater extent," said Kortney Penner, Ward 11 councillor.
The Calgary Chamber of Commerce issued a statement Tuesday night expressing disappointment in the decision to keep things as they are.
The chamber said it runs counter to Calgary's identity of being “open for business.”
"We have been actively working with our business community and city council on the importance of business viability and success in Calgary, knowing a thriving business community leads to a vibrant Calgary community more broadly. Businesses are the employers of many Calgarians, and we need a strong business environment to continue having a strong economy," the chamber said in its statement.
"We view the decision to maintain the status quo as a decision in favour of a further imbalance, as the ratio is projected to continue climbing. It leaves Calgary among the highest-cost cities compared to nearby and other major Canadian cities, hampering business success. Rising costs, inflation and debt continue to impede business, and unequitable property taxes only add to this."
The chamber said it will continue to advocate for a two per cent property tax shift in the coming years.
CTVNews.ca Top Stories
Air traveller complaints to Canadian Transportation Agency hit new high
The Canadian Transportation Agency has hit a record high of more than 71,000 complaints in a backlog. The quasi-judicial regulator and tribunal tasked with settling disputes between customers and the airlines says the backlog is growing because the number of incoming complaints keeps increasing.
LIVE @ 1:15 PT B.C. premier to give announcement related to public drug use
B.C.'s premier is scheduled to give an update Friday about public drug use in the province.
Orca calf that was trapped in B.C. lagoon for weeks swims free
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
AFN chief says Air Canada offered a 15% discount after her headdress was mishandled
After the Assembly of First Nations' national chief complained to Air Canada about how staffers treated her and her ceremonial headdress on a flight this week, she says the airline responded by offering a 15 per cent discount on her next flight.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
U.S. flight attendant indicted in attempt to record teen girl in airplane bathroom
An American Airlines flight attendant was indicted Thursday after authorities said he tried to secretly record video of a 14-year-old girl using an airplane bathroom last September.
76ers All-Star centre Joel Embiid says he has Bell's palsy
Philadelphia 76ers All-Star centre Joel Embiid has been diagnosed with Bell’s palsy, a form of facial paralysis he says has affected him since before the play-in tournament.
DEVELOPING Bird flu outbreaks: WHO weighs in on public health risk
The current overall public health risk posed by the H5N1 bird flu virus is low, the World Health Organization said on Friday, but urged countries to stay alert for cases of animal-to-human transmission.
Island near Mull of Kintyre for sale for US$3.1 million
An idyllic 453-acre private island is up for sale off the west coast of Scotland and it comes with sandy beaches, puffins galore, seven houses, a pub, a helipad and a flock of black-faced sheep.