Business Education Tax (BET)- Positive Impact to Property Tax
The government will lower high Business Education Tax (BET) rates that currently are as high as 1.25% to 0.88% for a vast majority of businesses, while offering a $5,000 reduction in small business tax relief. 94% of businesses in Ontario will see a reduction in their property taxes, by standardizing the Business Education Tax. What businesses pay depends on their location and currently averaging a rate of 0.98%. This tax reduction was directed specifically for businesses in the hospitality sector and was a top priority in ORHMA’s Relief Plan submitted to government. These reductions will result in $450M in annual savings to the business community starting in January of 2021.
There will also be options for allowing municipalities to match deductions. Further property tax reductions for small businesses are announced and this is also good news. It will be up to each municipality to define the size of small business.
ORHMA and the Greater Toronto Hotel Association (GTHA) have worked on this important issue and we are pleased to see these positive outcomes.