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April 23rd - Committee approves 2021 tax ratios and further study of small business tax subclass

The City’s Finance and Economic Development Committee today approved by-law amendments that would determine the tax ratios between various tax classes for 2021 and the property tax due dates for 2022.

The City would adopt neutral ratios and use all optional property classes permitted by the Assessment Act, to allow for different taxation levels within a property class and minimize shifting the tax burden between tax classes.

Tax mitigation measures aimed at keeping Ottawa affordable were also approved, similar to those approved in previous years. These include rebates to charitable organizations, and deferral of taxes and water bill increases for low-income seniors and persons with disabilities. A mandatory cap is in place to limit tax increases from reassessments for commercial, industrial and multi-residential properties.

The Committee approved a recommendation directing staff to consult with residents on creating a small business property tax subclass. The proposed subclass would offer a 10-per-cent tax discount to approximately 4,700 commercial properties that house roughly 7,800 small businesses across Ottawa. The discount would be offset by an increase of 0.68 per cent for 7,300 large commercial and industrial properties. The changes would have no impact on residential taxpayers. Following consultation, staff would report to Council with final recommendations by the end of Q3 2021.

The Province has postponed property value reassessment for the 2021-2024 period because of the COVID-19 pandemic. As a result, opening assessment values for 2021 and 2022 will be the same as the closing assessment values for 2020. The new reassessment date and period will be announced at the provincial budget tabling this fall, following stakeholder consultations.

Recommendations from today’s meeting will rise to Council on Wednesday, April 28.

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