Small business property owners will see a 15 per cent break on their City of Ottawa property tax bill this year, which will save them thousands of dollars.
The finance and corporate services committee will approve the property tax classes and tax reductions for the 2024 tax year on April 2, including tax relief for small business property owners.
The report says the small business subclass will see a 15 per cent reduction in property taxes in 2024, saving the average small business property owner a $2,500 in municipal taxes and a $1,100 discount in education taxes.
In 2021, Council approved the new optional small business subclass, offering eligible small businesses a discount of commercial and industrial property taxes. The discount applies to the owner of any commercial or industrial property measuring 25,000 sq. ft. or smaller.
“The discount was phased in over 2022 and 2023, with a total of 15 per cent discount by 2024, providing significant municipal tax savings, which is matched with the same discount for the education rate,” the report says.
The city said the new small business property tax subclass will benefit 5,800 properties or over 10,000 small businesses.
A list of eligible properties is available on the City of Ottawa’s website.
The tax break for small business property owners comes as more than 100 small business owners in Ottawa call on the city to provide financial relief.
In a letter to Mayor Mark Sutcliffe, the businesses call on the city to address a lack of grants and financial support for small businesses and a lack of rent control measures. The businesses also want the city to address an “increase in street harassment and violence and over-dependence on police instead of community-based supports” and a lack of promotion of the “amazing small businesses” we have in the city.
“Over a hundred small businesses across Ottawa are coming together with a single message to the mayor: unless the City of Ottawa drastically changes how it supports small businesses, the social fabric of our vibrant and unique communities is at risk,” the businesses said in a statement.
“Since the start of the pandemic in 2020, we have seen countless businesses in our communities close due to rising inflation and uncontrolled rent hikes. Now that we have reached the so-called post-pandemic era, long-standing community hubs are set to close.”
With files from CTV News Ottawa’s Toula Mazloum