Calgary city council votes to shift portion of tax burden from businesses to homeowners - Action News
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Calgary

Calgary city council votes to shift portion of tax burden from businesses to homeowners

Calgary homeowners will face a 7.8 per cent municipal property tax increase next year following budget deliberations at Calgary city council Wednesday.

Budget adjustments and tax shift approved in 9-6 vote

Calgary's skyline
This photo of downtown Calgary was captured by drone in March 2017. City council deliberated on its budget this week. (Ed Middleton/CBC)

Calgary homeowners will face a 7.8 per cent municipal property tax increase next year following budget deliberations atcity council Wednesday.

Previous budget discussions resulted in a 3.4 per cent property tax increase for 2024, but following adjustments, the figure has increased to generate funding for a number of projects, including the city's housing and mental health strategies.

Council also voted to shift the tax burden from businesses to homeowners by one percentage point in 2024.

The budget adjustments were approved in a 9-6 vote. The resulting increase would translate to about $16 more each month for the median priced house worth $610,000.

Calgary Mayor Jyoti Gondek said the business community has faced an unfair proportion of budget burden. Businesses are looking at a 3.5 per cent municipal tax increase next year, accounting for the shift.

A woman in a scarf.
Calgary Mayor Jyoti Gondek speaks to reporters Wednesday. (Mike Symington/CBC)

"This council is ready to keep going to make sure that the proportional share is done properly. We are one of the worst cities in this country in terms of charging businesses almost five times more than we charge homeowners," Gondek said.

Among council's list of investments is the city's housing strategy, which is intended to increase the diversity and affordability of housing in the city. To address housing affordability, the city is investing $90 million in capital funding, $27 million in annual ongoing funding and $54.5 million in 2024 one-time funding.

Council also funded transit and community safety, with money going toward transit peace officers, in part, and $15 million in annual ongoing funding and $2 million in 2024 one-time funding.

Council also approved $6 million in annual permanent funding for its mental health and addiction strategy.

Gondek added that the budget will help people who are in dire need.

"Right now, those that are unhoused, those that are struggling with mental health and addictions, they need us desperately to invest in programs. And that's what we did."

Gondek and councillors Courtney Walcott, Kourtney Penner, Evan Spencer, Peter Demong, Raj Dhaliwal, Richard Pootmans, Gian-Carlo Carra and Jasmine Mian voted in favour of the motion.

Dan McLean, Jennifer Wyness, Sean Chu, Terry Wong, Sonya Sharp and Andre Chabot voted against.

Corporate inflationary pressures were also addressed in the budget with money meant to cover rising costs where inflation has been higher than budgeted.

Ahead of the vote, Ward 1 Coun. Sonya Sharp questioned why taxes are increasing when the city is in a surplus.

"We're starting to sound like every other business out there saying we're increasing costs through inflation, just like supermarkets. We will always have a list of competing priorities," she said.

"It would be one thing if this was only one additional cost that Calgarians will be facing. But it isn't. We approved a tax shift on top of more responsibility going to residents."

Property tax bills will be finalized in the spring once the province sets the education property tax.

Council agreed to move a further one per cent of tax responsibility from businesses to homeowners in both 2025 and 2026.

In a media release sent shortly after the decision, Calgary Chamber of Commerce president and CEO Deborah Yedlin said she was encouraged by council's decision to shift the taxburden however, she feels a larger adjustment is necessary.

"Since 2016, the chamber has consistently called for city council to shift the property tax ratio by two per cent," her statement read.

With files from Scott Dippel, Mike Symington