Commercial and industrial firms in London are expected to see an 8.3 per cent property tax decrease this year
ACCORDING TO A report in the London Free Press, commercial and industrial firms in London could see a property tax decrease of 8.3 per cent this year after provincial changes to business education tax rates.
A plan endorsed by the city’s corporate services committee seeks to balance the tax burden between various tax classes and recommends retaining the ratios set by the 2020 tax policy. Doing so would result in a three per cent increase for homeowners, if approved by council.
It’s expected to save London businesses $22 million a year.
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“The reduction from the province in the business education tax rates has been a long time coming and it’s very, very welcome,” councillor and chair of the corporate services committee, Maureen Cassidy, told the Free Press.
Council had previously lobbied the provincial government to reduce business education tax rates, which were higher in Southwestern Ontario than other parts of the province. The change was announced in the November provincial budget.
Because there is no designated property tax class for small businesses, it’s not likely London’s small business sector will see much change. City staff is reviewing the possibility of creating another category, but notes that any break in tax payments would result in additional costs for other taxpayer categories.