On October 13, 2021, City Council approved a new Small Business Property Tax Subclass. The proposed new tax subclass provides small businesses and eligible properties with a permanent 15% reduction in property taxes phased in over two years.
The Province of Ontario has confirmed they will match the municipal property tax reduction with a corresponding 7.5% reduction in the education tax portion of the property tax for eligible small business properties for the 2022 tax year. The Province will increase the discount on the education portion by an additional 7.5% in 2023 to match the City’s permanent property tax reduction of 15% in 2023.
The new tax subclass will benefit 5,800 properties or over 10,000 small businesses and demonstrates the City’s recognition of their contribution to employment, neighbourhood vibrancy, and quality of life. The Small Business Property Tax Subclass discount equates to $9.9M in municipal tax savings to small businesses and an additional $5.3M in education tax savings through the provincial discount matching.
The last step to finalize the new tax subclass is the tabling and approval of the annual Tax Policy report at the Finance and Economic Development Committee meeting in April 2022.
Small business and property owners can view if their property will receive the small business tax subclass discount on ottawa.ca. Eligible properties will receive a letter advising them that they qualify for the discount in 2022 based on the criteria approved by Council and will automatically receive the municipal and education discount on their final tax bill in May 2022.