New regime supposed to be revenue neutral
The Calgary Chamber of Commerce is applauding City Hall’s initial steps to consolidate the business tax and non-residential property tax, believing it will result in lower rates for a majority of businesses.
Approximately 65 per cent of businesses will see a net tax decrease under this consolidation, according to the Chamber.
“Businesses now only have to worry about one cost instead of two, saving both time and money,” says Ben Brunnen, director of policy and government affairs and chief economist with the Calgary Chamber of Commerce. “Consolidation will also strengthen Calgary’s ability to compare our tax environment with other jurisdictions to ensure we are competitive.”
Consolidation is expected to save $1.3 million in city administrative costs and result in additional grant revenues of $3.2 million that will be returned to non-residential taxpayers. The proposal is revenue neutral, so there will be no impact on residential taxes.