Small Business Tax Subclass

Note from TABIA regarding Small Business Tax Subclass:

TABIA wishes to share some background on the Small Business Tax Subclass initiative led by TABIA over a number of years in support of Toronto BIAs and their members.

Toronto, alongside Ottawa, seized the Provincial government’s opportunity to introduce this subclass, and we commend the city for recognizing its significance.

Although not all-encompassing, it’s noteworthy that the program persists, with council directives to explore extending its scope.

See here for a breakdown showing the number of properties within each BIA benefiting from the Small Business Tax Subclass, enjoying a 15% reduction in property taxes compared to their previous Commercial Property Class designation.

In 2023, of the 17,569 commercial properties within designated BIAs, 14,824 met the subclass eligibility criteria. This translates to 84% of commercial properties in BIAs falling under the small business property tax subclass, leaving 16% or 2,745 BIA properties out of this subclass.

It’s essential to note that these reductions result from dollar shifts within the Commercial Tax Class, with businesses outside the Small Business definition absorbing the differential, primarily large commercial properties and office towers.

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