City of Toronto's businesses are now benefiting from changes being made to the City's property tax policies. On October 22, 2007, City Council approved the "Update to Enhancing Toronto's Business Climate" status report that highlights 12 new initiatives to enhance the City's competitiveness over the long term.
Council's adopted policy is to reduce the tax ratios for the multi-residential class and the business class to 2.5-times the residential tax rate by 2020. The plan also provides for an accelerated reduction in the rates for small businesses, with a target of 2.5-times the residential rate by 2015.
Other City efforts to enhance competitiveness have resulted in a successful agreement with the provincial government to reduce business education tax (BET) rates for the City of Toronto businesses closer to the average of the surrounding GTA municipalities, creating a new, fair water rate structure for industrial and manufacturing companies and continuing the relief of development charges for the city's commercial industry.
Tax policy improvements
- Enhancing Toronto's Business Climate - Update Staff Report, June 2007
- Enhancing Toronto's Business Climate - Update Council Decision, October 2007