Small Business Property Owners in Ottawa to Receive 15% Tax Break

City of Ottawa to Provide 15% Property Tax Break for Small Business Owners

Small business property owners in Ottawa will see significant savings on their property tax bills this year, as the City of Ottawa plans to offer a 15 per cent break on property taxes for the 2024 tax year. This move is expected to save small business property owners thousands of dollars.

The finance and corporate services committee is set to approve the property tax classes and tax reductions on April 2, with a focus on providing relief for small business property owners. The report states that the small business subclass will benefit from a 15 per cent reduction in property taxes, resulting in an average savings of $2,500 in municipal taxes and $1,100 in education taxes for eligible businesses.

The small business property tax subclass was introduced in 2021, offering eligible small businesses a discount on commercial and industrial property taxes. The discount applies to properties measuring 25,000 sq. ft. or smaller, with the full 15 per cent discount set to be implemented by 2024.

According to the city, over 10,000 small businesses and 5,800 properties will benefit from this tax break. A list of eligible properties is available on the City of Ottawa’s website.

The announcement of the tax break comes as over 100 small business owners in Ottawa have called on the city for financial relief. In a letter to Mayor Mark Sutcliffe, these businesses highlighted the need for grants, financial support, rent control measures, and community-based support instead of police intervention. They emphasized the importance of supporting small businesses to maintain the vibrant communities in Ottawa.

As the city works towards providing relief to small business owners, the hope is that these measures will help preserve the local economy and support the growth of small businesses in the region.