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Consulting the general public on giving property tax breaks to small companies was a simple promote to council’s finance and financial growth committee on Friday.
The committee adopted a workers suggestion to ask for suggestions on a plan to chop property taxes for small companies by 10 per cent.
Municipalities can create a small-business property tax subclass because of modifications introduced in by the Ontario Progressive Conservative authorities final 12 months in response to the financial devastation attributable to the COVID-19 pandemic.
The subclass offers municipalities the ability to regulate property taxes particularly for these companies.
In Ottawa, the municipal authorities proposes to make up the misplaced income from a property tax break by asking bigger companies to pay extra beginning in 2022.
Wendy Stephanson, the town’s chief monetary officer, mentioned workers determined to suggest a 10-per-cent low cost for small companies as a result of it gained’t considerably harm different enterprise taxpayers.
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The tax break for small companies additionally gained’t require householders to cowl the misplaced tax income.
Mayor Jim Watson mentioned it’s about “massive enterprise serving to small enterprise” relating to adjusting property taxes to replicate the financial realty through the pandemic.
Town figures about 4,700 properties can be eligible for a small enterprise property tax low cost, however these properties lease to roughly 7,800 small companies. The province has indicated it will match the discount on the training portion of the property tax invoice for small companies.
About 7,300 business properties in Ottawa would see a property tax enhance of lower than one per cent to pay for the small-business low cost.
One problem with issuing a property tax low cost to the property proprietor, who’s the one paying the tax invoice, is that the measure is finally meant to assist the small enterprise tenants.
Deputy treasurer Joseph Muhuni mentioned the town would examine complaints of landlords not passing down the tax reductions to rent-paying tenants. Town would cancel the tax break from landlords who aren’t in flip serving to tenants, he mentioned.
Council on Wednesday will probably be requested to log off on the committee’s suggestion. Employees would then have a session interval earlier than bringing a report again to council by the tip of September.