Most businesses in downtown Red Deer will pay a five per cent higher business levy after a three-year freeze.
But because the levy is based on the size of a business, a handful of larger businesses in the downtown could face an average increase of 28 per cent.
Red Deer City Council approved the Business Improvement Area (BIA) tax and tax rate bylaw on Monday, This funds the Downtown Business Association (DBA), in their regular meeting today.
The bylaw reflects decisions made during budget deliberations and is the final step allowing The City to collect the approved funds on behalf of the DBA.
Most taxable businesses in the downtown are taxed at the minimum tax rate set by the DBA board, and will see a five per cent increase, which equates to about $10. The remaining businesses will have an average increase of 28 per cent, which, for a BIA taxpayer with an assessment value of $32,100, equates to an increase of $131.
Among the reasons for the higher tax levy is a 12 per cent decrease in taxable businesses in the business improvement area
Late last year, the DBA’s board chair Brandon Bouchard told city council that the revenue boost is needed to help plan a full slate of activities at the city’s core in 2023 — the goal is to plan 250 special events — as well as to cover some higher costs due to inflation and a loss of provincial money.
In 2023, the DBA’s overall budget will be $752,000, with about $264, 500 generated by the levy and $24,500 drawn from reserves and the balance generated from external contracts.
BIA tax notices will be mailed May 23, and taxes are due June 30.
Mayor Ken Johnston said, “Downtown is the vibrant heart of Red Deer,” and he added the Downtown Business Association “is an important partner in helping our community reach this vision, and these funds are necessary to continue momentum and bolster DBA grants and safety initiatives for all.”
The DBA and BIA were established in Red Deer in 1983. The DBA advocates for downtown businesses and aims to attract new businesses and Red Deerians to the city’s core. The BIA consists of 373 taxable businesses.
Among the special events planned is the weekly Downtown Market that runs on Wednesdays during the warm season as well as live performances on Ross Street Patio. For more information, please visit website www.downtownreddeer.com.
