One of the impacts of encouraging redevelopment and intensification in the City of Toronto is that it drives up the price of commercial properties in those designated areas, resulting in small businesses seeing significant increases in their property taxes.
This results because commercial properties in those areas have seen an increase in their property assessments that have been greater than the average for other commercial properties in Toronto. When a property’s value increases more than the average for other similar properties, it can often result in higher property taxes.
These property taxes are then passed onto small business tenants within these buildings, often threatening the financial sustainability of those businesses.
To help address this challenge, Chris and his team at MPAC worked with the Toronto Association of Business Improvement Areas (TABIA) and the City of Toronto to identify and advocate for policy approaches that could support small businesses.
The result was that the Province of Ontario announced the creation of a new Small Business Property Tax Subclass that municipalities could use to mitigate these increases. To help support municipalities and their implementation of the new property tax tool, Chris and his team worked with TABIA and other municipal stakeholders to create the Ontario Small Business Property Subclass Report.