Red Deer District Chamber says 5.49% tax rate increase raises concerns among businesses

The chamber acknowledges this is driven by significant increases outside the city’s control. This includes a 12.83 per cent increase in the provincial education tax and a 27.65 per cent increase for the Bridges Community Living Foundation.

“For Red Deer businesses, the issue is not solely the rate itself, but the pattern and predictability of increases,” as stated in a media release.

The Chamber says the rise in taxes adds cost pressures at a time when businesses are already facing other challenges like inflation.

“Council and administration have made meaningful progress in bringing the municipal increase down to 3.97 per cent, and that effort should be recognized,” said CEO Frank Creasey. “At the same time, the final result highlights an ongoing challenge for businesses. When major cost drivers shift during the process, it creates uncertainty that makes planning, investment, and growth more difficult.”

The Chamber added that predictability and consistency in taxation are critical to maintaining a competitive business environment.

“Businesses understand the financial realities facing the City and support responsible fiscal management, including rebuilding reserves and maintaining essential infrastructure,” added Chamber President Matt Wear. “However, the shift from 3.97 per cent to 5.49 per cent reinforces concerns about regional attractiveness and long-term affordability. Greater stability in the overall tax environment is essential to maintaining business confidence.”

The chamber remains supportive of the city on its direction on financial reform, transparency, and disciplined spending. But they still encourage collaboration across all levels of government to address the impact of these increases and to improve cost certainty for taxpayers.

by rdnewsNOW staff

Red Deer District Chamber says 5.49% tax rate increase raises concerns among businesses

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