Business Tax Assessment FAQ
Emailing, faxing or mailing your concerns to our office may be the best way to contact us as we receive higher than normal call volumes immediately after we send out assessment notices.
Please include your business tax roll account number, name, phone number and the best time for us to contact you during normal business hours.
- What is a business assessment?
- Who is assessed?
- How is a business assessment prepared?
- What is net rent?
- Why is my assessment not the same as my rent?
- What are the benefits of using net rent?
- When are rental rates reviewed?
- What can I do if I disagree with the new assessment?
- What is new for 2009?
- Who determines how much business tax is collected?
- What if the size or location of my business has changed?
- When are my 2009 business taxes due?
- 1. What is a business assessment?
A business assessment is a value placed on any space occupied or used by a person for the purpose of operating a business. The assessment is used for taxation purposes only and does not reflect the profitability of a business.
Business assessments reflect the typical net annual rental value of similar business in an area.
- 2. Who is assessed?
All businesses located on commercial or industrial property are assessable. An assessment notice is sent to the owner of the business. It does not matter if the person owns or rents the space.
A person having a lease may choose to sublet certain areas to another person; however the lessor may be assessed and taxed for the entire area.
- 3. How is a business assessment prepared?
To estimate the typical 'net annual rental value' of the space a business occupies, the City considers the commercial and industrial rental market across Edmonton.
Questionnaires are mailed to property owners, managers and agents each year and interviews may be conducted with tenants and agents. This rental information forms the database for the mass appraisal of business space.
Assessors analyze net rents paid for various types of space and establish typical net annual rental rates. Business assessments are calculated by multiplying the total leased or occupied area (square footage) by the net annual rental rate for the type of space.
The assessment (square footage x net annual rental rate) shown on the assessment notice is multiplied by the tax rate set by City Council.
The result is the tax you owe.
Area x Net Annual Rental Rate = Business Assessment
Business Assessment x Tax Rate = Business Tax
- 4. What is net rent?
Net rent is the typical annual rental value of similar space in an area, exclusive of all operating and occupancy costs.
- 5. Why is my assessment not the same as my rent?
The net annual rental value is based on an analysis of the rental market on July 1, 2008. Actual rents may differ due to timing of lease arrangements or varying rates within the market. Assessments are based on typical annual rental rates for properties like yours, not your actual rent.
- 6. What are the benefits of using net rent?
- Properties are usually rented on a net rent basis (rents are set based on market value). Ratepayers can easily compare their assessments for consistency with other businesses.
- With fluctuating operating costs, particularly utilities for older properties, net rent provides a current, fair and equitable way to distribute the business tax.
- 7. When are rental rates reviewed?
Rental rates are reviewed and updated every year.
- 8. What can I do if I disagree with the new assessment?
If you have concerns regarding your assessment, please contact our office to discuss it with a business assessor first. The assessor will make any necessary corrections and issue an amended notice.
If an assessor is unable to resolve your concerns, you may wish to appeal your assessment by filing a complaint with the Assessment Review Board, by the deadline shown on your assessment notice. Information regarding the appeal process, including the fee for filing a complaint, is included on the back of your assessment notice.
It is important to note that you can appeal your business assessment but the business tax rate is set by City Council and cannot be appealed.
- 9. What is new for 2009?
Your 2009 tax reflects another reduction in your total business taxes as a result of Council's decision to combine the business tax revenue to the non-residential property class over the four year period, 2008 to 2011.
Any outstanding business taxes remaining in 2011 will continue to incur penalties and the City will pursue collection activities to recover any uncollected revenue.
- 10. Who determines how much business tax is collected?
Council determines in December each year how much tax revenue needs to be collected to provide City services. Shifting business tax revenue to non-residential property taxes was approved by Council in May 2007.
The business tax revenue will be shifted to all non-residential properties including linear property, vacant land and federal and provincial properties previously not paying any business taxes.
- 11. What if the size or location of my business has changed?
Please notify our office of any changes by e-mail, fax, mail, or in person. Contact information is provided below.
- 12. When are my 2009 business taxes due?
Two payment options are available:
1. The full amount can be paid in a lump sum by March 31, 2009
2. You may take advantage of the convenient monthly tax payment plan and spread your payments over the year. To pay your taxes in monthly installments by automatic bank withdrawal, contact the City of Edmonton by calling 311 or e-mail taxinquiry@edmonton.ca
For more information:
Assessment and Taxation Branch
2nd Floor Chancery Hall
3 Sir Winston Churchill Square
Edmonton, AB T5J 2C3
| Telephone | 311 or 780-442-5311 if outside Edmonton |
|---|---|
| Fax | 780-496-1986 |
| ATsurvey@edmonton.ca |
