In 2005, Toronto Council adopted a 15-year plan to correct the imbalance in property class tax allocations between the 416 and 905 (Enhancing Toronto’s Business Climate – It’s Everybody’s Business) with the goal of reducing tax inequalities and promoting commercial investment in the City of Toronto. A tax ratio target of 2.5:1 between commercial and residential tax rates was set to be implemented by 2020 or earlier.
As part of its 2016 revenue tools and long-term fiscal direction reporting aimed at long-term solutions to decrease the City’s capital funding gap, City Council in 2016/17 endorsed a deceleration of these commercial rate reductions.
In 2017, the Point One Plan was developed by a wide range of leading business advocacy groups to address the tax competitiveness imbalance facing businesses looking to locate in Toronto. The plan outlined the position below and continue the commercial-to-residential ratio reduction program to a level more competitive with the surrounding 905 municipalities.
OUR POSITION: The City of Toronto must commit to scheduled commercial-to-residential ratio reductions – 0.1 annually – over a long-term timetable as a way to build confidence in Toronto as a place for investment and job growth.
Updated November 21, 2017