The provincial government released its budget on November 5, 2020. Here is a summary of items related to property assessment and taxation:
Postponing the Property Tax Reassessment
The budget mentioned the government’s decision to postpone the Assessment Update but did not provide a future date for the next reassessment.
Enabling Property Tax Relief for Small Businesses
In response to concerns about the property tax burden on small businesses, the Province plans to provide municipalities with the flexibility to target property tax relief to small businesses.
To ensure appropriate flexibility, the government is proposing an amendment to the Assessment Act that would allow municipalities to define small business eligibility in a way that best meets local needs and priorities.
Reducing Property Taxes for Employers
The Province announced immediate action to reduce high Business Education Tax (BET) rates by $450 million in 2021. As a result, the BET will be lowered to a rate of 0.88 per cent for both commercial and industrial properties beginning in 2021.
Property Tax Exemptions
The budget proposes amendments to the Assessment Act to apply the existing property tax exemption for Ontario branches of the Royal Canadian Legion, for 2019 and subsequent tax years, to Ontario units of the Army, Navy and Air Force Veterans in Canada.