As part of its recently announced 2020 Ontario budget, the Ford government is proposing to give municipalities the flexibility to target property tax relief to small businesses.
Speaking alongside mayor John Tory and finance minister Rod Phillips, premier Doug Ford says Ontario is considering matching these reductions, which would provide small businesses with as much as $385 million in municipal and provincial property tax relief.
“Small businesses are the backbone of Ontario’s economy, but many have been suffering through the pandemic and struggling to stay on their feet,” Ford said.
“Our municipal partners came to us with an idea to provide more support for small businesses through property tax relief, and in our fall budget, we delivered.”
Through the 2020 budget, the Ford government announced that it will lower high Business Education Tax (BET) rates for over 200,000 employers starting Jan. 1, 2021.
Today, I joined the Premier to announce important relief through tax cuts for small businesses in our city. Through these cuts, we are helping businesses save $133 million in Toronto alone and for some Toronto businesses this will mean savings of over $1,000. pic.twitter.com/vplpNYsrKR
— John Tory (@JohnTory) November 10, 2020
Meantime for Toronto, the mayor said the City will save over 130-million in taxes, saying the decision will positively impact local businesses.
Tory says a tax sub-class will be created in a separate measure or bracket to help small businesses.
“The fact is, we need it more than ever because of the pandemic,” Tory said.
“We have worked well together throughout the pandemic because we know the people want their government’s cooperating at the best of times and especially, during the tougher times that we’re experiencing now.”
Ford says rates will be reduced to 0.88 per cent, which, for many employers, represents a reduction of 30 per cent.