Next Tuesday, October 5, the Finance and Economic Development Committee (FEDCo) will consider a new property tax subclass for small businesses that will provide eligible properties with a 15% reduction in property taxes phased in over two years.
The new Small Business Property Tax Subclass will impact 5,800 properties or over 10,000 small businesses. An average small business property assessed at $700,000 will see a $2,800 reduction in property taxes. Eligible properties will automatically receive the new Subclass discount based on criteria related to property use and property size.
The City of Ottawa’s Finance Services Department consulted several key business organizations to develop the proposed new tax subclass, including the Ottawa Coalition of BIAs (OCOBIA), Ottawa Board of Trade, Building Owners and Managers Association, and Regroupement des gens d’affaires (RGA).
Small businesses contribute to our city’s employment, neighbourhood vibrancy, and quality of life. The small businesses in Stittsville keep our main street and plazas thriving and are a driving force of our local economy. Ottawa is one of the first cities in Ontario to implement this type of tax subclass for small businesses to recognize this valuable contribution.
Council had previously approved a study of this change earlier this year. If the tax subclass report is approved by FEDCo it will rise to Council on October 13 for final approval.