Varcoe: Calgary businesses welcome tax shift, but say it’s ‘just one poke in the eye, instead of two’

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The taxing problem isn’t new, but it sure has been uncomfortable for all involved.

What is different is councillors finally made a tough decision Friday on how to deal with the tax-redistribution dilemma, shifting more of it to homeowners.

They had spent the past three years adopting one-time programs to soften the blow of massive tax hikes on businesses outside of the core — caused by the downtown office skyscrapers losing a significant chunk of their value during the downturn — but it just kicked the problem down the road.

Even with its decision to redistribute about $60 million of the tax burden onto homeowners next year, council is still facing heat from business leaders who think the city needs to go further, find more spending cuts in its $4.1-billion budget — and they worry Calgary hasn’t yet found a long-term resolution to a daunting dilemma.

“I definitely don’t think they should be high-fiving themselves at all at city hall,” said Annie Dormuth of the Canadian Federation of Independent Business.

Calgary Chamber of Commerce CEO Sandip Lalli appreciated council’s decision to have homeowners share more of the overall tax tab, moving the city closer in line with other municipalities.

But she thinks the city lacks a focus on lowering spending, uncovering greater efficiencies or selling off city-owned land as part of a broader plan.

“On the property tax system, we got some wins,” Lalli said.

“The reduction of costs and increased effectiveness of the government, that was our second ask . . . and that’s where we fell short.”