Why It Costs $1,231 to Work in Banff and $150 in Canmore

Doing business in Banff costs significantly more than in Canmore, largely due to how each municipality structures its business licence fees.

For some operators, that gap is stark.

“My business licence in Canmore is $150 and my business licence in Banff is $1,231.48,” said Trent Funke, owner of Trillium Home Services, a Canmore-based garage door repair company.

The gap reflects two fundamentally different fee structures. In Banff, fees vary by industry and business characteristics to reflect differences in business scale and their community impact. A key distinction is whether a business is resident or non-resident, which affects how fees are allocated.

For Funke, who regularly works in Banff, those differences are not always clear.

“In previous years, the costs were itemized, but this year it appears as a single fee of $1,231.48, which makes it harder to compare directly,” he said.

Funke operates as a non-resident business in Banff, a designation that carries additional costs. While he said he understands the rationale, the proximity between the two communities complicates the distinction.

“Given the close proximity between Canmore and Banff, and the relatively small number of businesses in my trade within the Bow Valley, all, to my knowledge, based in Canmore, it would be beneficial to see some flexibility for businesses located in Canmore,” he said. “You can drive an hour in Calgary and still be in Calgary, but Canmore to Banff takes less than 25 minutes.”

In Banff, business licence fees are not only regulatory but also function as a key funding source for Banff & Lake Louise Tourism (BLLT), which provides destination marketing, visitor services and industry coordination.

Resident businesses automatically receive BLLT membership through their licence. Non-resident businesses, which operate in the town without a permanent commercial location, pay higher licence fees that include a mandatory tourism marketing component collected by the Town and directed to BLLT. According to the Town of Banff, about 98% of business licence fee revenue is directed to BLLT.

“The Town of Banff collects the fees from all BLLT members through the business licence fee,” said Jason Darrah, communications director for the Town of Banff.

In Canmore, by contrast, business licence fees are generally lower and primarily administrative, covering regulatory costs rather than tourism marketing. Tourism promotion, led by Tourism Canmore Kananaskis, is funded through a combination of accommodation levies, municipal support and voluntary industry participation.

“If the Town of Banff did not have an agreement with the BLLT agency, with the Town facilitating its funding, the business licence fee in Banff and Canmore would be comparable,” Darrah said.

Despite the higher cost, Funke said the fee has not significantly impacted his decision to operate in Banff, where he has long-standing clients.

“It may influence some other business owners’ decisions,” he said. “In my case, it does not significantly impact whether I continue operating in Banff.”

Still, the cost remains a factor in his business planning.

“I count my jobs and I get to a point where I sarcastically say to myself, ‘Business licence paid for, I can start earning money now,’” Funke said.

The Town of Banff recently completed a scheduled four-year review of its business licence bylaw, presented to council’s governance and finance committee Feb. 10. The review focused primarily on technical updates, including business classifications and administrative processes, with no major changes proposed to the overall fee structure at this time.