Nenshi on Alberta's corporate taxes: Province not actually holding the line

Calgary's mayor is challenging Progressive Conservative leader Jim Prentice's claim that Alberta is holding the line on corporate taxes.

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Mayor Naheed Nenshi says the province is raising the education portion of property taxes by 8.2 per cent this year.

Factored in with the municipal portion, that amounts to 5.4 per cent more for businesses in Calgary on this year's property tax bill. Nenshi says it's a substantial increase and a "strange policy decision." 

"You know we've heard for weeks and weeks and weeks that increases to corporate taxes are a job killer and, yet, that very same premier increased what I consider to be the most unfair corporate tax," he said.

"You got to pay this tax if you have property or if you pay rent regardless of what your profit or your income is or how good a year you had, or if you're hiring or firing people."

The news is slightly better for Calgary homeowners.

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With the education tax increase in the provincial budget running below the 4.5 per cent increase city council approved last fall, it means homeowners will pay 4.2 per cent more for this year's property taxes.

Prentice attempts to deflect

When asked about it on Tuesday, Prentice said the decision is out of the province's hands.

"The property tax assessment at the end of the day is levied by the City of Calgary and other municipalities," he said.

"And in the challenging circumstances that we are in, they face the same range of choices that other governments face in the province to reduce expenditures and to make sure their taxes are appropriate. So I leave that in the hands of the city to set their taxes at appropriate levels."

While technically the province does not directly levy property taxes, it still sets a total amount that it expects to see from municipalities.

Below is a chart of the education portion for non-residentials from last year to this year that shows how much more the province is asking for and the increase to the tax rate.