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Calgary Business Owners Concerned Over Imminent Property Tax Hike – Calgary

Some Calgary business owners are eagerly awaiting their property tax bills after their monthly tax rates rise – in some cases double digits.

Clint Nickolas owns Diversified Machine Works in Foothills Industrial Park. He said he was shocked that his property tax installment rose by more than $ 1,200 a month in January. According to his calculations, this will result in a tax burden of about $ 70,000 in 2020 – although his estimate has fallen by about $ 198,000.

“Twenty-seven percent more,” said Nickolas. “I thought it was ridiculous to be honest.”

SEE:

A surge in property tax bills shocked Calgary business owners

Nickolas said he pays his property taxes through the city of Calgary’s tax rate payment plan.

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It allows people to pay monthly instead of a flat rate in June. The payment level can be adjusted in the course of the year, depending on the tax rate that the council set in spring.

Calgary Mayor Naheed Nenshi reiterated that the TIPP program was only an estimate.

“It’s important to remember that no one has their tax bills yet,” said Nenshi.

He said the final numbers could change but admitted that some Calgary businesses may pay more property taxes than in 2019.

“Remember there was a one-time discount last year,” he said. “Although corporate taxes were cut this year, the discount is gone too.”

Nickolas, who bought the building in May 2019, said he has already done two hikes since then. He doesn’t know how much more he can take.

“It’s very frustrating. When will tax increases stop or slow down? Or even be sensible? ” he said.

Nenshi told Global News that there is still a chance the council could approve another small business discount.

“I suspect that the Council will have a conversation the next time we meet [priorities and finance committee] Meet in a couple of weeks whether or not we want to spend more money on another definitive, definitive one-time discount to help people transition to the new normal, ”Nenshi said.

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The Mayor of Calgary predicts that property taxes will rise due to the Alberta provincial budget download

Nickolas said he couldn’t pass hikes in the 27 percent range on to his customers, who are mostly oil and gas companies, because he’d have no work. He has also reduced his workforce from 30 to 14 employees. He said he has cut his spending costs and is now calling on the city to review its spending too.

“Everyone understands that we have to pay our share of taxes,” he said. “But if everything keeps increasing in extravagant amounts – I mean, where do you come from with that money?”

Nikolas said that if the city doesn’t act, it could face the same situation that the core is facing.

“It could turn into what downtown is: a ghost town,” said Nickolas.

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