Calgary businesses are preparing for a substantial increase in property taxes following the recently revealed provincial budget, which has raised concerns among local owners. The budget proposes an increase in the education property tax requisition, projected to generate a hefty £3.6 billion across Alberta by 2026. For Calgary, the requisition is set at £1.2 billion, marking a £200 million rise from the previous year. As a result, the average non-residential property owner in Calgary can expect an additional £1,816 in costs this year, with the overall burden—including a 1.6 per cent tax hike from Calgary’s city council—potentially nearing £3,000 by 2026.
Business Owners Express Concerns
Operators like Arlen Smith, who runs the Palomino Smokehouse in downtown Calgary, are feeling the pinch. “It’s terrifying with the cost of everything else right now,” he remarked, highlighting the anxiety surrounding the ever-increasing expenses. Smith, who typically adjusts prices cautiously, fears that raising costs could alienate customers. “We have to at least break even,” he added, reflecting the challenging landscape for local businesses.
The Palomino served as the venue for an Opposition NDP press conference, where leaders voiced their discontent with the provincial budget and its implications for local property owners. NDP leader Naheed Nenshi stated, “This budget makes life more expensive,” underscoring the budget’s impact on the financial wellbeing of residents and businesses alike.
Opposition Criticism of the Provincial Budget
Nenshi also critiqued the government for what he perceives as a misuse of record oil revenues, which have contributed to a projected £9.4 billion deficit. He pointed out that the education property tax in Calgary has soared by 58.6 per cent across the last four provincial budgets, contrasting sharply with Edmonton’s education requisition of £639 million for 2026.
In Edmonton, the impact of the education property tax on non-residential properties is expected to add an estimated £11 per £100,000 of assessed value. When combined with city council’s 6.9 per cent property tax increase, this translates to an additional £164 per £100,000. Nenshi suggested that the provincial government is attempting to shift blame to local authorities for these tax increases, while the real responsibility lies with the provincial administration.
Government Defends Tax Increases
In response to the backlash, Premier Danielle Smith defended the tax increases, stating that the province is committed to funding a third of the education operating budget through property taxes, particularly to address the growth demands in Calgary. “We heard from ratepayers in Calgary that they wanted us to keep up with growth, they wanted us to build more schools,” she explained, emphasizing the necessity of these measures given the pressures from a growing population.
Smith noted that without these changes, it would be “unaffordable” for taxpayers in Calgary to cover the full operating costs of education. The two major school boards in Calgary are set to receive £2.24 billion in funding for the upcoming school year, a move she argues is essential for meeting the educational needs of the expanding community.
In addition, Smith highlighted that local businesses would benefit from upcoming apprenticeship programmes included in the budget, which she believes will help foster a more skilled workforce.
Calls for Tax Relief
The Canadian Federation of Independent Business (CFIB) has expressed concerns over the budget’s implications for local businesses, advocating for the creation of a property subclass for small enterprises to alleviate financial pressures. CFIB’s Alberta director, Keyli Loeppky, suggested that implementing a lower tax rate for small businesses could provide much-needed relief, enabling them to navigate the challenging economic landscape more effectively.
As Calgary city council prepares to finalise property taxes in the coming spring, property owners can expect to receive their tax bills by May.
Why it Matters
The anticipated increases in property taxes are a significant concern for Calgary’s business community, particularly as they grapple with rising costs and a competitive market. These tax hikes not only strain the financial resources of local businesses but also have broader implications for the economic vitality of the region. As the city looks to balance fiscal responsibility with the needs of its growing population, stakeholders will be keenly watching how these changes unfold and affect the local economy in the months and years ahead.
