A City of Toronto press release today answers a question I’ve been curious about since Ford took office. The plan to rebalance commercial property tax rates started under David Miller will continue:
The ‘Enhancing Toronto’s Business Climate’ initiative will reduce the tax ratios for the multi-residential class and the business classes to 2.5-times the residential tax rate by 2020 (a 15 year plan), and provides for an accelerated reduction in tax rates for small businesses, with a target of 2.5-times the residential rate by 2015 (a 10 year plan, instead of the 15 years for the rest of commercial).
This is good news. While Toronto’s residential property taxes are very low, its commercial taxes are unduly high. This encourages businesses to set up in the 905 which — nothing against the 905 — isn’t really a desirable outcome, particularly as it relates to a growing class of young people who live downtown and commute outwards to the suburbs for work.