Business assessment increases 75%

[speedog]

News story (link (http://calgary.ctvnews.ca/property-assessments-leave-some-calgary-businesses-in-shock-1.3235992)) on a small business that has seen their assessment raised by 75% - estimated monthly taxes going to $3,500 from $2,000.

Increases like this are going to hurt a lot of small businesses but what is the city to do?

[rage2]

The real question is, did property values actually go up 75% on 17th Ave or is the city gaming assessments to offload the tax burden in the core? From the article, it sure sounds like the city is manipulating assessments at their will which is a slippery slope.

[speedog]

I personally don't think property values have gone up that much but people need to understand that property taxes and business taxes are based upon different criteria. Property taxes are strictly based upon a property's assessed value and yes, I can agree that property values in the core have probably dropped more than elsewhere. Business taxes, are based upon the assessed value of the business space - in other words, the rent or lease rate a business is paying and I know from our business, all the city waned to know was our monthly lease rate. So knowing this, rental/lease rates in the core have probably dropped dramatically compared to non-core areas and because the city tries to balance the tax load fairly, the non-core businesses are going to see big increases while many core businesses will see the opposite.

The problem is that many small businesses, such as the one detailed in the new article, probably don't have the available cash to shoulder such an increase and especially so when revenues are down. Is it fair, nope but in the end, the city still has to operate and get their funding from somewhere. What should also be happening at the same time is some major belt tightening at the city and I certainly haven't seen anything of the sort. It would've also been nice if the news story would've explained things a bit better with respect to property and business taxes. Never the less, if the city doesn't do some major cut backs, then the next year there just won't be as many businesses to tax which could result in a shift towards increased property taxes to offset decreased business tax revenues - the city has some serious homework to do and for the moment it just looks like they're doing no homework.

[NoSup4U]

Originally posted by rage2
The real question is, did property values actually go up 75% on 17th Ave or is the city gaming assessments to offload the tax burden in the core? From the article, it sure sounds like the city is manipulating assessments at their will which is a slippery slope.


I recall seeing an article last week mentioning where they blatantly said businesses outside the core will be taking the hit to offset.

It just amazes me these actions can be put forth with little to no care of the repercussions that even the average Joe has the brain capacity to calculate. Combined with minimum wage increases, we are going to see another bad year for businesses closing, or pay $6 a cup for coffee :nut: :nut: :nut:

[colsankey]

Originally posted by rage2
The real question is, did property values actually go up 75% on 17th Ave or is the city gaming assessments to offload the tax burden in the core? From the article, it sure sounds like the city is manipulating assessments at their will which is a slippery slope.

Articles i read indicated core properties were way down, and areas outside the core were fairly stable. So other businesses are eating the diffrence to keep revenue the same.

[rage2]

Originally posted by colsankey
Articles i read indicated core properties were way down, and areas outside the core were fairly stable. So other businesses are eating the diffrence to keep revenue the same.
But that's not what happened in assessments. Core dropped 6% and outside core (in this case 17th Ave SW) went up 75%, making the latter take a more brutal share of tax contributions.

If core went down 6% and outside core stayed the same, nobody would be bitching (tax rate would of course go up because of it). The assessments were gamed so that the core would pay even less than the actual drop in valuations.

But what do I know. Math is hard... :devil:

[mr2mike]

Originally posted by speedog
What should also be happening at the same time is some major belt tightening at the city and I certainly haven't seen anything of the sort.

Socialist govenments are immune to recessions. Just raise taxes and keep the costs flowing.

[Xtrema]

Purple Reign said it's not final and everyone should contest the assessment and there is a potential fund that SMB can apply for relief.

[phreezee]

There's only one way to solve this... Twitter battle!
http://www.cbc.ca/news/canada/calgary/nenshi-rempel-taxes-sexism-1.3930330

[mr2mike]

Originally posted by Xtrema
Purple Reign said it's not final and everyone should contest the assessment and there is a potential fund that SMB can apply for relief.

I heard $1000 for a business to contest the assessment.
Have 1,000 businesses contest it, that's $1M for the purple prince...WINNING!

[msommers]

One commenter on the Herald mentioned a 150% increase to their business.

At the same time, I've read that council voted to take out 15 million to help small businesses.

[sabad66]

Originally posted by phreezee
There's only one way to solve this... Twitter battle!
http://www.cbc.ca/news/canada/calgary/nenshi-rempel-taxes-sexism-1.3930330
lol @ pulling out the sexist card. "math is hard" = sexist?

[mr2mike]

Originally posted by msommers
At the same time, I've read that council voted to take out 15 million to help small businesses.

And where do you think this $15M came from? :dunno: :zzz:

[jwslam]

http://calgaryherald.com/news/local-news/apparently-math-is-challenging-mayor-mp-spar-over-looming-tax-hikes-set-to-hit-small-businesses


On social media Sunday, Conservative MP Michelle Rempel blasted Calgary’s property tax system, which has many business owners outside the core bracing for major tax hikes this year, amid a vacancy rate never before seen in the city’s downtown.

“This sort of action will further cripple Calgary’s jobs market,” Rempel tweeted, adding Calgary’s city council “needs to have a rethink about this policy.”

After dismissing Rempel’s assertions on Twitter, Calgary’s mayor said Tuesday the MP was “trying to make hay out of something she doesn’t understand.”

“I’m happy to have her wade in; I’m happy to have her help, if she wants to help, but it’s sort of helpful if she actually knows what she’s talking about first,” Nenshi told reporters.

Asked what Rempel was confused about, Nenshi said the MP simply “didn’t understand what was going on.”

“Apparently, math is challenging, but hopefully, she’ll figure that out,” the mayor said.

Rempel, who has a degree in economics, said she’s fully aware of how math works and called Nenshi’s remarks condescending.

“That’s probably one of the most arrogant, out of touch, sexist statements I’ve heard in the entirety of my political career,” she told Postmedia Tuesday.

The former cabinet minister who represents Calgary Nose Hill said her office has been inundated with emails and phone calls from Calgary families and businesses forced to make tough choices.

“I have thousands of people out of work in my riding,” she said. “They’re struggling to make ends meet, and what does that mean in terms of ‘math is challenging’? It means they’re making hard choices on what the family is spending money on.

“This isn’t, ‘Are we going on vacation or not this year?’ It’s, ‘Can I afford Kraft Dinner or can I afford to make my mortgage payments?’”

Rempel’s remarks come as Calgary’s sputtering economy has resulted in a $4-billion drop in the assessed value of offices in the core, resulting in a significant non-residential property tax increase for many suburban businesses.

Acting city assessor Harvey Fairfield said last week 76 per cent of Calgary businesses will see a tax increase when bills are mailed out in February, despite an effective tax freeze.

The mayor urged business owners who believe their assessments are unfair to go through the appeal process, adding about 1,000 businesses are set to see their property taxes shoot up by more than 30 per cent.

While he acknowledged property taxes are one of the only forms of taxation the city has access to under the Municipal Government Act, Calgary Chamber of Commerce CEO Adam Legge said the assessment system and appeal process has long had challenges.

“Many, many businesses spend thousands, if not tens of thousands of dollars, to appeal assessments that really are a waste of dollars that could be going towards investment in our economy,” he said.

[Maxt]

I saw some of the new parts pricing today from my wholesalers who've adjusted their sell costs for 2017 due to increased costs. Its pretty ugly.....

[max_boost]

still viable for now lol looks like no new car leases this year or fancy vacation this year. :nut: :dunno:

[Masked Bandit]

I'm hoping business owners on here can post their changes for 2017 along with their location. Assuming the actual tax rate stays mostly unchanged, I'm set for a 26% DECREASE. Generic office space in Midnapore.

[Xtrema]

Originally posted by jwslam
http://calgaryherald.com/news/local-news/apparently-math-is-challenging-mayor-mp-spar-over-looming-tax-hikes-set-to-hit-small-businesses



Rumor Rempel is considering running for Mayor. Hence the outburst. Good funding raising strategy if that's what she's after.

I'm not surprised, she is now an outsider in the current fed Con party. Doesn't sounds like she will get any respect there anyway. Same reason why Kenney left.

[tirebob]

Just looked and my assessment dropped by $1500.00 per year over last year. :dunno:

[rx7_turbo2]

Originally posted by Xtrema
Rumor Rempel is considering running for Mayor. Hence the outburst. Good funding raising strategy if that's what she's after.

Interesting.

The whole "that's sexist" claim from Rempel was bogus, it wasn't sexist. It was an un-necessary claim as well. Nenshi went Nenshi, that's to say a condescending asshole, she could have gone after him with considerable success just for that.

I find it interesting the local media doesn't seem to be avoiding negative Nenshi stories anymore, the Nenshi v. Rempel story got pretty good traction. People seem to be getting pretty sick of his big mouth. We'll see I guess when the time comes to vote though. Massive small business tax increases for some, numerous indiscretions and outbursts, a lawsuit he's paying us back for. Any candidate running against him has more than enough ammo.

[adam c]

How long until Calgary becomes the new Detroit?

[eglove]

Originally posted by adam c
How long until Calgary becomes the new Detroit? :werd:

[kertejud2]

Originally posted by rx7_turbo2


The whole "that's sexist" claim from Rempel was bogus, it wasn't sexist. It was an un-necessary claim as well. Nenshi went Nenshi, that's to say a condescending asshole, she could have gone after him with considerable success just for that.


She's not known for being very tactful.

Denying her retweets and going on a blocking blitz hasn't helped her either. She was tossed a floater and hit into a double-play. If this was supposed to mark the start of a mayoral bid, it was a pretty terrible one.

[max_boost]

Originally posted by adam c
How long until Calgary becomes the new Detroit? lol damn. better get out now! :eek:

[rx7_turbo2]

Originally posted by kertejud2
She's not known for being very tactful.

Denying her retweets and going on a blocking blitz hasn't helped her either. She was tossed a floater and hit into a double-play. If this was supposed to mark the start of a mayoral bid, it was a pretty terrible one.
We agree. She was given a decent opportunity to really hit Nenshi in the nuts but she squandered it as soon as she cried "sexism". I don't like Nenshi but his comment wasn't sexist.