Calgary businesses want steeper tax shift as four-year budget talks begin this fall

Calgary business owners are making a loud call for relief ahead of this fall's four-year budget deliberation: lower property taxes.

Businesses in Calgary currently pay about 4.6 times what homeowners pay in property tax. Though commercial and industrial properties account for only 15 per cent of the city's property value, they're paying close to half of the city's property taxes, according to Kayode Southwood, senior policy analyst for Alberta with the Canadian Federation of Independent Business.

A CFIB survey of Calgary business owners identified property tax lowering as the top priority. Other concerns ranked next: crime and safety, red tape, and public construction projects.

Bob Pelzer, owner of Kraken Auto in Kensington, has watched his property tax jump from $12,000 to $90,000 since 2010. "Anytime a business has property taxes that increase, it's literally like driving a car with the emergency brake on. Everybody suffers," Pelzer said. He argues council needs to focus on pulling back spending and stop prioritizing voters over businesses, which he calls "the backbone that keeps things running."

City council voted in 2023 to shift the tax burden from businesses to homeowners by one percentage point. Last fall, council cancelled that directive and instead agreed to shift the burden by 0.25 per cent over an eight-year period starting next year. Southwood said the pace is too gradual. "We'd like to see more of a shift off of business owners, off of the non-residential taxpayer."

Ross Sisson, owner of Absolute Audio Video in Bowness, faces infrastructure problems. His business flooded twice due to water main breaks and a large sinkhole in recent years, driving up insurance costs. Sisson believes the city should prioritize critical infrastructure upgrades over climate initiatives. "There's a lot of infrastructure that needs to be replaced," he said.