The province confirmed today that it will match the municipal property tax reduction put forward by Ottawa city council.
In October, council approved a new small business property tax subclass that would provide small businesses with a reduction in property taxes of 15 per cent, phased in over two years. It was confirmed today by the province that the reduction will be matched with a corresponding reduction of 7.5 per cent in the education tax portion for small business properties in the 2022 tax year, and an increased discount of an additional 7.5 per cent in 2023.
The intent is to provide relief from the challenges businesses have been facing throughout the pandemic.
The subclass is expected to benefit more than 5,800 properties or about 10,000 small businesses. The small business property tax subclass discount equates to $9.9 million in municipal tax savings and another $5.3 million in education tax savings. Approximately 52 per cent of commercial and industrial properties in Ottawa are estimated to be eligible
The last step will be tabling and approval of the annual tax policy report in April of this year.