'We're sending a message': Executive Committee approves 15% tax cut for Toronto small businesses

Toronto.Citynews.ca
Oct. 28, 2021
Brandon Choghri

Toronto Mayor John Tory and the city’s Executive Committee have approved a report that recommends providing small businesses with a 15 per cent tax cut by creating a new property tax subclass.

City Council will consider the report at its next meeting beginning November 9.

The city says approximately 25,000 small businesses could benefit from the reduction starting in 2022, representing 60 per cent of all commercial properties in Toronto.

In a news release, the city details two different categories to determine eligibility:

Businesses located downtown, on the central waterfront, in designated growth centres or avenues in the City of Toronto’s Official Plan

• Properties must be classified within the commercial or new commercial tax class (with certain property types excluded)
• Properties must have a Current Value Assessment (CVA) less than or equal to $7 million
• Lot size must be 7,500 square feet or less, or for commercial condos a gross floor area of 2,500 square feet or less

Businesses located anywhere else in the city

• Properties must be classified within the commercial or new commercial tax class (with certain property types excluded)
• Properties must have a CVA less than or equal to $1 million

Businesses will not have to apply for the reduction, but the city says there will be an appeal process for property owners who believe they should be included in the new tax subclass.

“We are sending a message loud and clear that small businesses in Toronto will be supported. We know the last year and half have been extraordinarily tough for all businesses, but particularly for the shops that line Toronto’s streets,” Mayor John Tory said on Wednesday.

“We are here to reassure businesses that have been asking for help that we have their back -- and we’ll use smart tax policies like this one to ensure they grow and prosper and continue to serve the residents of Toronto. This 15 per cent tax reduction for small businesses is one more way we are working to ensure that our city comes back stronger than ever.”

The city’s news release also says the provincial government is expected to match the municipal tax rate reduction with a reduction in the business education tax for those deemed eligible.