The City of Calgary has finalized 2019 tax rates and, as expected, council has shifted some of the non-residential tax load to residential accounts. Monday's finalized 2019 tax rates determine what residential and non-residential property owners will pay in taxes this year.
This year's combined overall tax rate for non-residential property is 0.0220217, up from the 2018 rate of 0.0194264. This works out to an approximate 13.4% increase year-over-year.
Calgary's finalized tax rates are as follows:
|Assessment Class||2018||2019||Change (%)|
|Residential Tax Rate||0.0063573||0.006654||4.67% ↑|
|Non-Residential Tax Rate||0.0194264||0.0220217||13.36% ↑|
While ultimately council approved to decrease the non-residential tax rate, this does not necessarily mean that your 2019 taxes will be lower - in fact, most property owners will see an increase.
This can be attributed to several factors. Firstly, 2019 was the culmination of the 5-year Business Tax Consolidation and the first year that the City of Calgary did not send out business assessment notices. Instead, the tax rate increased for 2019 non-residential property owners an equal amount as the business tax was decreased. Similarly, due to downtown Calgary's high vacancy rate, the shift in assessment values was loaded onto non-residential properties outside of the downtown core this year, resulting in higher taxes for suburban businesses.
2019 property tax bills will be mailed out in May and are due on June 28, 2019. Please remember to pay your taxes on time to avoid a penalty, even if you currently have an open appeal on your property - successful assessment challenges will be credited/refunded to your account upon conclusion.
If you have additional questions regarding the 2019 finalized tax rate and your non-residential property, please contact one of our consultants directly.