2017 Business Tax. Pay by March 31 to avoid 7% penalty

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1 2017 Business Tax Pay by March 31 to avoid 7% penalty

2 Business taxes support City services Council annually reviews the budget required to provide City services and determines what portion of the needed revenue will come from business tax. Learn more at calgary.ca/ourfinances How your business tax bill is calculated Business tax is calculated using the assessed value, as found on your business assessment notice, and the Council-approved business tax rate. The tax rate reflects the amount of taxes to be paid for every $1 of assessed value. The formula used to determine the business tax rate: Business Total revenue required from business tax tax rate = Total business assessment The formula used to determine your business tax bill: Business Assessed value of the business premises tax bill = x business tax rate Business taxes are based on the calendar year January 1 to December 31. Supplementary tax bills Supplementary assessment notices and tax bills are issued after the regular annual billing and are sent to businesses that: were not initially included on the business tax roll; moved into new premises or opened new premises or new branches of an existing business; were only in operation for a portion of the year; or increased the square footage occupied for business purposes, after the business tax roll was prepared. Supplementary tax bills are due and payable on the date shown on the bill.

3 Taxes and an assessment complaint If you have filed a complaint against your assessment, you must still pay the taxes by the due date to avoid penalties. Penalties for late payment are not waived due to the scheduling of a complaint hearing. If a decision on your complaint results in a lower tax levy, the reduction is credited to the tax account. Interest is credited to the account if the tax reduction results in a credit balance. A refund cheque is automatically issued for accounts with a credit balance greater than $25. Credits of less than $25 remain on the account. Business Revitalization Zones & Business Improvement Areas Businesses located in a Business Revitalization Zone (BRZ) or Business Improvement Area (BIA) will see an additional levy on the bill. This levy is collected by The City of Calgary on behalf of the BRZ/BIA to fund various projects and promotional activities within the zone/area throughout the year. Each BRZ/BIA s Board of Directors annually establishes a proposed budget that is submitted to City Council for approval. Once approved, a BRZ/BIA Tax Rate sufficient to meet the budget requirements is established. The BRZ/BIA levy is calculated by multiplying the business assessment by the BRZ/BIA Tax Rate. For more information on your BRZ or BIA, visit calgary.ca/bia

4 Payment methods Business Tax Instalment Payment Plan (BTIPP) BTIPP allows you to pay your business tax on a monthly basis instead of a single annual payment. Your payment automatically comes out of your chequing account the first day of every month, making budgeting easier and avoiding the risk of a 7% late payment penalty. Businesses can join BTIPP at any time by requesting an agreement. Website: calgary.ca/btipp Phone: 311 or CITY (2489) Reminder for current BTIPP customers: If you re a current BTIPP participant your taxes are paid in monthly instalments and you don t need to worry about the payment due date. Visit calgary.ca/btipp no later than the 22nd of the month before your next scheduled instalment to: change your banking information; cancel your BTIPP participation for any reason, including closing or selling your business. Bank change and plan cancellation requests received after the 22nd of the month will be processed after the upcoming withdrawal. Through your bank Payments can be made through most financial institutions. Make your payment at least three business days prior to the due date, to meet the payment deadline. Owners of multiple businesses: register and make payment on each business identifier (BID) separately. Online/telephone banking Search and select Calgary (City of) Business Tax when using your bank s online or telephone banking bill payment option. The account number is the eight-digit BID (business identifier) shown on your bill. If your bank requires additional digits, use zeros in front of your BID.

5 Branch banking in person Bring your bill(s) with you. The bank should register/ confirm the Calgary (City of) Business Tax as the payee and your BID(s) are registered on your bank account bill payment profile. The eight-digit BID is the bill account number. If needed, use zeros in front of your BID. ATM/Bank machine Before paying by ATM you need to have registered Calgary (City of) Business Tax as a payee, either through a branch, online or telephone banking. Register the BID(s) shown on your business tax bill(s) as the bill account number(s). If you pay by ATM, keep your receipt as proof of the date and time of payment. Mail Make cheque or money order payable to The City of Calgary (do not send cash). Cheques (including post dated cheques) must be dated for the due date or earlier to avoid penalty. Write your BID(s) on your cheque and enclose the remittance portion of your bill(s). Ensure your cheque is signed and completed accurately, as The City is not responsible for errors and/or omissions. The Canada Post postmark is honoured as the payment date. Commercial postage meter imprints are NOT honoured. If a Canada Post postmark is absent or illegible, the date it is received by The City of Calgary will be considered the payment date. The City is not responsible for lost payments. Late payment penalties will apply. City cashiers Third Floor, Calgary Municipal Building, 800 Macleod Tr. S.E., Monday to Friday, 8 a.m. to 4:30 p.m Pay by cash, cheque or debit card. Credit card payments are not accepted. When using a debit card be aware of your daily withdrawal limit.

6 24-hour deposit box Street level on the southeast side of the Municipal Building (East Entrance) Street S.E.: Deposit payment prior to midnight of the due date to meet the payment deadline. Do not deposit cash. Make cheque or money order payable to The City of Calgary. Cheques (including post dated cheques) must be dated for the due date or earlier to avoid penalty. Ensure your cheque is signed and completed accurately, as The City is not responsible for errors and/or omissions. Enclose the remittance portion of your bill(s) and write the BID(s) on your cheque. Penalties for late payment and service charges On April 1, a penalty of 7% of the unpaid current year s taxes will be added to the balance. On July 1, an additional penalty of 7% of any unpaid current year s taxes will be added to the balance. Commencing January 1, any unpaid taxes and penalties accrued from previous years are charged a penalty of 1% of the outstanding balance the first day of each month. If your bank does not honour your cheque or monthly BTIPP payment, a service charge of $25 is added to your account. If you re paying more than one business tax account with a single cheque or BTIPP payment and that payment is not honoured by your bank, an additional service charge of $7.50 is added to each business tax account affected by the non-payment. Penalties are added to your account(s) if a returned cheque results in taxes not being paid by the due date.

7 Unable to pay by the due date? If you re not on the Business Tax Instalment Payment Plan (BTIPP) and are unable to pay your taxes in full by the due date, please contact a Collection Officer at to make alternative payment arrangements, subject to applicable penalties. Is your information correct? Please notify our office of any changes to the business name, business owner, location or mailing address information shown on your bill by visiting calgary.ca/ businesstax and selecting Business Changes in the Quick Links. Are you moving your business? Please notify our office prior to moving by visiting calgary.ca/businesstax and selecting Business Changes in the Quick Links. Please provide your new location address, the date of relocation and the contact name and telephone number. This allows us to make adjustments to your tax levy for the current year and apply any applicable credit to the business tax for your new location. If you are paying by BTIPP your payments will continue and your instalment will be adjusted automatically when you are billed at your new location. Are you closing your business? Please notify our office prior to closing your business by visiting calgary.ca/businesstax and selecting Business Changes in the Quick Links. Please provide a forwarding address so we may send you an adjusted tax notice. Contact us to request a refund should your tax adjustment result in a credit balance. If you are paying by BTIPP visit calgary.ca/btipp for more information or to cancel your plan participation.

8 Important reminders Check your bill and verify the accuracy of the information. Tax payments must be received on or before the due date shown on your bill to avoid late payment penalty. Business owners who currently use the Business Tax Instalment Payment Plan (BTIPP) don t need to worry about the tax payment deadline. Have a question or concern? Website calgary.ca/businesstax Phone 311 or CITY (2489) Hearing impaired TTY Visit a.m. to 4:30 p.m., Monday through Friday Third Floor, Calgary Municipal Building 800 Macleod Tr. S.E. 8 a.m. 4:30 p.m., Monday through Friday. Mail The City of Calgary (#8044) P.O. Box 2405, Station M Calgary, AB Canada T2P 3L