City looks to cut small business property tax by 10%

The City of Ottawa is looking to cut property taxes for small businesses by 10 per cent, and pay for it byincreasingtaxes paid by big-box stores and other large commercial properties.

Some4,700 small commercial properties might save $1,000 to $1,500 on their average $15,000tax bill, and be required to pass along the savings to the businesses that rent space from them, Mayor Jim Watson explained in a Friday news conference.

Residential taxes wouldn't be affected, but 7,300 big commercial properties wouldsee their taxes rise less than a percentage point, according toa plan that will go before council in April

"That means that multinationals like Walmart and Costco, who have done very well during the pandemic, are going to help pay for this tax discount to small businesses," said Watson.

It's one offew tools the municipality has to help small businesses hit hard by COVID-19shutdowns, and possibly the one with the most impact so far, according to theOttawa Coalition of Business Improvement Areas.

"It's a way of directing a little bit more money to small business at a time when they most definitely need it,"said chairMark Kaluski.

New tax tool comes from Ontario

The Ontario government first announced in its 2020 budget that it would give municipalities the ability tocreate an entirelynew subclass of commercialtaxpayers to help small businesses.

Cities are still waiting for provincial regulations allowing it to do so, so the new tax classes would only take effect in 2022.

• Toronto councillors urge province to release rules that would pave way for small business tax relief

Kaluskiwas a bit disappointed the government didn't get the new regulations in placefor this tax year.

"There's a sense that next year, there might be more bankruptcies and vacancies to deal with."

When it does take effect, the new small business tax discount is tobe permanent.

"I think it's a long-term view in terms of giving that relief to small businesses something they probably have needed for a long time," explained the city's chief financial officerWendy Stephanson.

The city willconsult the commercial community, but the discount would likely apply toproperties up to 15,000 square feet. It's anticipated mostsmall offices, smallretail, restaurants, motels, assembly halls, daycares, and marinas would receive the 10 per cent cut.

City employees to go back to work

Staff will have a plan ready by summer to start returningmunicipalemployees to offices so they can helpsupport those shops and restaurants that have been struggling.

About 4,000 of 17,000 employeeshave been working from home.

• City manager says COVID-19 has strained resources but hopes for permanent change

The mayor is also lobbying hard on behalf of the Ottawa International Airport, which has seen a big reduction in flights to the find extra government funding to afforditsStage 2 LRT station, and to help it resume international flights.

The city is making plans to cut rental rates by half at city buildings, such as Shenkman Arts Centre and the Horticulture Building in September to help musicians and festivals.

Much, however, will depend on the spread of COVID-19 and vaccinations.