Submitted

A Story of Struggle and Unfairness

Life isn’t getting any easier for one mature, widowed woman in Edmonton who’s trying her best to make ends meet. Despite owning a modest 1,200-square-foot home and a 2,000-square-foot commercial condo, her income has been stuck at $50,000 a year since 2020. She runs her small business from the condo, preferring to keep strangers from coming and going from her home. But between rising property taxes, income taxes, CPP contributions, and loan repayments, she’s feeling the squeeze.

Financial Pressures Piling Up In addition to her living and business expenses, she carries a combined mortgage of $400,000 and a $30,000 CEBA COVID loan that she borrowed to survive during the Edmonton COVID lockdown, which lasted from March 2020 to July 2021. The financial strain of repaying these debts on a fixed income adds to the pressure.

The Property Tax Pinch Her commercial condo, the heart of her livelihood, has seen property taxes climb even when its assessed value dipped. This increase feels particularly unfair, considering the building's value decreased from 2023 to 2024 while the taxes still went up.

Meanwhile, her home's property tax adds another layer of expense:

All told, she’s shelling out $15,421 in property taxes a year, a hefty chunk of her $50,000 income.

Income Tax and CPP—No Breaks in Sight On top of that, the federal government isn’t offering her any relief from CPP contributions. As a self-employed person, she has to cover both the employee and employer portions. In 2024, her tax and CPP bill came to $13,492.25:

Here’s a simple breakdown of her total 2024 taxes and net income:

Stuck Between a Rock and a Hard Place With her age making it tough to find another job, and her energy not what it used to be, boosting her business income isn’t realistic. But while her income has stayed the same, the taxman keeps wanting more. And since the federal government isn’t easing up on CPP, and she’s still paying off her COVID loan, it’s time for the City of Edmonton to step up and make the property tax system fairer for small business owners.

Time for a Fairer Deal The City should consider property tax relief for small businesses, especially those owned by older residents who have fewer options to increase their income. It’s especially unfair to increase taxes when property values decline. After all, small business owners like this Edmonton woman are the backbone of the community. It’s only fair they get a little breathing room so they can keep their doors open without being taxed into the ground.