CANMORE – A fee increase for Canmore’s business licence registry – the first one in nearly a decade – was given the green light by council.
But not before an effort by the Canadian Federation of Independent Business (CFIB) to halt the increase in rates.
In a letter from Bradlee Whidden and Emily Peden, policy analysts for CFIB – a non-profit organization for small- to medium-sized businesses – said if council were to halt raising business licence fees it would “signal its support for small businesses, reinforcing a message that the municipality values its local businesses and the community they create.”
It listed the City of Winnipeg as an example for removing licensing requirements for most businesses and the City of Edmonton offering biannual licensing.
The organization stated about one-third – 34 per cent – of small business owners in the province indicated business licensing as the “most burdensome municipal regulation” next to building permits and property taxes.
“Over two-thirds (67 per cent) of owners emphasize that eliminating municipal red tape, such as business licensing, is critical, yet only 14 per cent express confidence in their municipality’s commitment to reducing these barriers,” stated Whidden and Peden. “This action by Canmore’s municipal government will only exacerbate this cost burden, adding another unnecessary hurdle that current and prospective business owners must overcome to start or maintain a business in the municipality.”
A staff report from Eleanor Miclette, the Town’s manager of economic development, recommended the increase in fees, which would be the first time since 2015. The Town issues about 2,700 business licences a year, which is before the addition of requiring tourist homes to get a licence.
A review by Town staff analyzed fees in Banff, Cochrane, Calgary, Sylvan Lake, Okotoks, Airdrie, Chestermere, Drumheller, as well as Victoria, Whistler and Penticton in British Columbia.
The report emphasized licence fee structures are different for each municipality.
The new fees in Canmore range from $150 for a tourist home and a retail business with 300 square metres or less, to $375 for a restaurant with 40 or more seats for a non-resident business at $600.
The report stated the fee increase is proposed at 15 per cent and is anticipated to bring in an extra $85,000 a year.
In 2023, the business registry had $557,325 in revenue collected and $512,564 in 2022.
The Town’s reserve policy stipulates that any revenue collected through business licence fees is used for economic development initiatives and programs, with unused revenue going to the economic development reserve.
The 2023 consolidated financial statements for the Town had the economic development reserve at $976,239 after being $894,930 in 2022.
The 2023-28 Canmore budget and business plan noted Tourism Canmore Kananaskis receives 12 per cent of the business registry revenue to assist with regenerative tourism initiative.
Tory Kendall, chair of Downtown Canmore BIA, said the organization was aware of the upcoming potential changes.
“We understand the business license fee has been low relative to other municipalities and we had no objection to the proposed increase,” he said.
Licence fees ranged significantly in the comparisons, with a restaurant with 40 or more seats being as low as $172 in Calgary to the upper end of $1,864 in Banff. A retail business with 300 square metres or less is $172 in Calgary but rises to $4,645 in Banff.
Council approved adding tourist homes to the business registry – a part of the Town’s vacancy tax – with an extra 650-700 licences anticipated to be issued a year. It’s expected to bring in an extra $97,500 in revenue.
Council also asked staff to return with information for the 2025-26 budget process on adding visitor accommodations to the registry. Miclette previously told council there were 1,452 individual visitor accommodation tax rolls and if each unit needs a business licence it would add 1,063 new ones.
At the October council meeting, Miclette told council it would add a “significant workload” and visitor accommodation – such as a hotel – would typically have one licence.
“Business licenses play a crucial role in shaping how municipalities engage with and support the local small business community,” stated the letter from Whidden and Peden. “However, rising licensing costs add to the financial and administrative pressures that small business owners are already facing.
“This increase arrives at a difficult time when confidence levels among Alberta’s business owners remain low as businesses continue to struggle with the rising cost of doing business and lower consumer demand.”
