In November of 2021, Toronto City Council adopted the report: Implementing a Small Business Property Tax Subclass, which provides a 15 per cent reduction in the municipal tax rate for eligible small business properties starting in 2022. The Province of Ontario provided a matching 15 per cent reduction in the provincial education portion of property taxes for eligible properties.
Note: Business property owners whose property has been included in the small business property tax subclass do not need to take any further action – the new classification and reduction in tax rates has been reflected in your property’s 2022 Final Tax Bill. Tenants of eligible small business properties should speak to their landlord about receiving this reduction.
In January 2022 the Municipal Property Assessment Corporation (MPAC) mailed Amended Property Assessment Notices to property owners whose commercial property meets the eligibility requirements to be included in the new small business subclass.
If you have received an Amended Property Assessment Notice from the MPAC that indicates a change in the tax class of your property to “Commercial Small Business”, your property has been deemed to meet the eligibility criteria to be included in the small business property tax subclass for 2022.
To be eligible for inclusion in the Small Business subclass, a property must meet either of the criteria set out below, depending on the location of the property.
|Property location||Criteria to qualify for the subclass|
|Anywhere in the city||
|Properties located within Downtown and Central Waterfront, Growth Centres, and/or Avenues (refer to note 2 below)||
Note 1: The following property types are not eligible to be included in the Small Business subclass: Properties classified within the office building, shopping centre, parking lot and vacant land classes, land already classified within the Creative Co-location Facility subclass or Vacant Land subclass, and land for which a demolition permit has been issued.
Note 2: To be eligible, properties must be located within the geographic areas identified as Downtown and Central Waterfront, Avenues or Centres on the map titled: Designated Areas for the City of Toronto Small Business Subclass.
At any time after the Program Administrator determines that a property should be included in the small business subclass, the Program Administrator may conduct an audit to verify that the property continues to meet the eligibility criteria. Properties that experience changes during the year may become ineligible. This may occur due to changes in assessment value, usage, tax classification or other changes affecting eligibility.
Business property owners do not need to apply for the small business subclass tax relief. However, properties that may meet the eligibility requirements for the new small business subclass, but have not received an Amended Property Assessment Notice from the Municipal Property Assessment Corporation (MPAC) advising that the tax classification of the property has been changed to “Commercial Small Business”, or are not included on the list of eligible properties, may submit a written request for reconsideration.
Property owners who believe they have an eligible property that has not been included in the Small Business subclass have the right to file a Request for Reconsideration and/or an Appeal. Tenants cannot dispute.
On April 4, 2022, a list of eligible small business subclass properties will be made available through the City’s Open Data portal. Property owners have 90 days to submit a request for reconsideration.
Note: The deadline (July 4) to submit a RfR for 2022 has now passed, no late submissions can be accepted.
Submit request by:
Fax: 416-696-3424 Tips on faxing.
In-person: Inquiry & Payment Counters
The Program Administrator will determine requests for reconsideration regarding inclusion and provide a letter of determination, in accordance with Article 12 of Chapter 767, Taxation, Property Tax, of the City of Toronto Municipal Code and Ontario Regulation 282/98.
Once a determination is made through the RfR process, if the property owner is not in agreement with the decision, an appeal form may be submitted to the Appellate Authority, within 90 days of the issuance of the determination. The Controller has been appointed by City Council to hear appeals related to the Small Business tax subclass. In addition, the Appellate Authority may extend the deadline for filing a RfR if there are extenuating circumstances. Hearings of the Appellate Authority are in writing.
When you fax this form to the Appellate Authority you are required at the same time to fax it to the Program Administrator at 416-696-3427 and 416-696-3424. To learn more about the appeal process, refer to Appellate Authority’s Rules or Procedures.
For inquiries about for filling an appeal form please call the Appellate Authority at 416-885-0462.
For eligible properties within the new small business subclass.
City Council has adopted that the tax rate for the small business subclass be set at a 15 per cent reduction in the commercial property class tax rate. This means approximately 29,000 commercial properties in the City will be eligible for this tax relief.
The remaining properties in the commercial tax class will see a property tax rate increase of 0.99 per cent in the municipal portion of property taxes to fund the tax relief.
The Government of Ontario has enacted a matching 15 per cent reduction in the business education tax rate for eligible small business properties.
Starting in 2022, graduated tax rates and the Residual Commercial tax class designation will be discontinued, and a single tax rate will apply to the commercial property tax class, with a 15 per cent reduction in the rate to apply to eligible small business properties.
Regulations were enacted on May 7, 2021, and January 18, 2022