Toronto announces tax reduction for small businesses starting in 2022

Brown, red, blue and yellow buildings on a side street in a city.
Local businesses can apply for the tax reduction now after city council voted to move it forward. The reduction will apply for the 2022 tax year. Photo courtesy of Ayman Hallak via Unsplash.
Daniel Centeno - CJRU - TorontoON | 18-11-2021
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The City of Toronto is continuing its efforts to help small businesses throughout the COVID-19 pandemic.

In a recent city council vote, Toronto plans to introduce a 15 per cent small business property tax reduction for 2022.

Further, during the city council meeting on Nov. 9, councillors voted to introduce the small business tax reduction.

The tax reduction will come into effect for the 2022 tax year, and will apply to approximately 25,000 small businesses across the city, according to a recent press release.

“Tax policies like this one are just one way we will continue to support small businesses in the city," said Gary Crawford, chair of the budget committee and Scarborough Southwest city councillor. "Attracting and supporting small business on our main streets is key to Toronto's long-term prosperity. The success of the neighbourhood food store, barber shop or boutique are important to their community and contribute to the overall success and fabric of our city.

To qualify, businesses must be located in the downtown core or along avenues that are in the City of Toronto Official plan.

Businesses must be classified within a commercial tax class and based on current value assessment by the city, the properties must be less than or equal to $7 million.

Lastly, the lot size cannot exceed 7,500 square feet.

A request for reconsideration or appeal process will be available for property owners who feel that their property should be included in the new tax subclass.The provincial government is expected to match the municipal tax rate reduction with a corresponding reduction in the business education tax for all eligible small business property owners, the press release reads.

Further details on the plan and business applications are expected to release in the new year.

Listen to the CJRU news update here: