This week at the Finance and Corporate Services Committee, members reviewed and approved the 2025 Tax Policy and Other Revenue Matters report, which outlines property tax classes, tax ratios, and by-laws that impact property taxes and other revenues. These decisions determine how the tax burden is distributed among different property classes.
Addressing Multi-Residential Tax Inequities
One key issue discussed was the disparity in tax rates for multi-residential buildings. Currently, rental buildings with more than five units are taxed at different rates depending on when they were built. Buildings constructed after 2001 are taxed at the residential rate of 1.000, while older multi-residential buildings face a higher rate of 1.4091—resulting in 40% higher taxes than those paid by homeowners, condominium residents, and tenants in newer rental buildings. This inequity is particularly concerning given that renters in Ottawa earn, on average, only 60% of the income of homeowners.
To address this, City staff proposed a phased reduction of the multi-residential tax rate to 1.000 over four years, beginning with an initial reduction from 1.4091 to 1.3000. This change would automatically trigger a rent reduction under the Residential Tenancies Act, benefiting approximately 58,500 tenants in multi-unit apartment buildings with a 1% rent reduction in 2026.
Additional Tax Policy Changes
Beyond multi-residential taxation, the approved recommendations support renters, businesses, farms, and local economic development in Ottawa. Key highlights include:
-Eliminating the parking lot and commercial vacant land tax classes to encourage development, increase transit ridership, and align with Council’s goal of a greener city.
-Small businesses continuing to pay 15% less in taxes than regular commercial properties, benefiting 6,000 properties or 10,000 businesses, with up to $18.5 million in tax savings.
-An 8.1% decrease in municipal taxes for industrial businesses, particularly supporting manufacturing and production sectors impacted by tariffs.
-Continuing tax deferral programs for low-income seniors and people with disabilities, as well as the Charitable Rebate Program, Farm Grant Program, and tax reductions for various subclasses.
-A new by-law to provide tax relief for residents whose properties are substantially unusable or undergoing significant repairs for at least three months.
These measures aim to create a fairer tax system while fostering economic growth and affordability across Ottawa.
Update on the Tewin Motion
This week, I delayed the motion I put forward regarding the removal of the Tewin Community lands from the Official Plan to ensure that the residents of Osgoode Ward have a municipal representative at the table when this important decision is made. Given the scale and impact of this issue, it is essential that all affected communities have a voice in the process.
Now that the motion has been made public, it will undoubtedly be a key issue in the upcoming byelection. This will allow Osgoode residents to engage candidates on their positions and ensure their concerns are fully represented in Council’s decision-making.
I intend to reintroduce this motion after the byelection and remain committed to ensuring proper Indigenous consultation, fiscal responsibility, and responsible planning. I have been in discussion with Grand Chief Savanna McGregor of the Anishinabe Algonquin Nation, and she is aware of this pause and supports both the motion and the decision to delay it for the byelection.
My office is hiring! Interested candidates can apply here: Councillor’s Assistant (Policy and Research Coordinator) Job Details | CityofOttawa. The competition closes April 8, 2025.
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