AB municipalities tax small biz unfairly
CFIB challenges candidates in upcoming municipal elections to “cap the gap” on property taxes
CALGARY/EDMONTON, June 22, 2010 – With property tax bills coming due in most Alberta municipalities next week, the Canadian Federation of Independent Business (CFIB) released a study today showing that 247 of the province’s 350 municipal governments (71 per cent) charged small businesses higher property tax rates than residents based on the same assessed value.
“Small businesses are willing to pay their fair share for the services they use, but some municipalities continue to charge far more than is reasonably fair. In fact, given that small businesses actually consume less municipal services than residents, too many local governments continue to treat small businesses like cash cows,” said Richard Truscott, CFIB’s Alberta Director.
In those municipalities with a population of at least 5,000, small businesses across Alberta paid an average of 2.36 times more property tax than residents on the same assessed value. In some communities, the property tax gap is much worse. Calgary and Edmonton were the worst offenders among cities with property tax gaps of 4.57 and 3.12, respectively.
“It’s time for the unfairness to stop. That’s why CFIB is challenging candidates in the upcoming municipal election to commit to cap the gap on property taxes for the benefit of local economies and jobs,” Truscott added.
Reducing the tax burden on small businesses doesn’t mean that residents should pay more. CFIB has laid out several recommendations to help municipalities control operating spending so the property tax system can be rebalanced over time. The report also gives examples proving it can be done. In fact, Toronto has committed to reduce its gap to 2.5 by 2013. Saskatoon has also fulfilled a 10-year plan to reduce its gap to 1.75 this year.
Regional backgrounders, as well as data for every municipality in Alberta, are available at: www.cfib.ca/alberta_municipalities.html. To arrange an interview with Richard Truscott, please contact Tynessa Walters at 1 866 444-9290.
