On October 13, City Council approved a new Small Business Property Tax Subclass. The proposed new tax subclass provides small businesses at eligible properties with a permanent 15% reduction in property taxes phased in over two years.
The new tax will benefit 5,800 properties or over 10,000 small businesses and demonstrates the City’s recognition of the contribution of small businesses to employment, neighbourhood vibrancy, and quality of life. As a leading municipality in Ontario, Ottawa is one of the first to consider and implement a Small Business Property Tax Subclass.
Eligible properties will automatically receive the new discount based on staff-developed criteria related to property use, property size, and extensive consultation with several key business organizations. The list of all qualifying properties will be published on ottawa.ca by January 31 each tax year, as required by provincial regulation.
The new tax is a long-term policy tool and will be offset by the elimination of the optional Excess Land Subclass and by an increase of 1.46% to Commercial and Industrial Broad Class properties that are not eligible for this new tax discount. This discount to small businesses will have no impact on residential property taxes.
Council recognizes that thriving small businesses are foundational to a well-rounded economy and the approval of this new tax discount supporting small businesses is one way we are doing so.
For more information, please visit ottawa.ca/business subclass taxes.