Toronto councillor proposes tax cut to help small businesses amid budget deliberations

With final approval for Toronto’s budget fast approaching, some of Mayor Olivia Chow’s opponents are looking to make changes for the benefit of some small businesses across the city.

The owner of Nunu Ethiopian Fusion along West Queen West, Chris Rampen, said his restaurant continues to need help. “We’re in a business of death by a thousand cuts and one cut less is appreciated.”

In the wake of the COVID-19 pandemic, Rampen wants the city to continue to step in and offer relief. Councillor Brad Bradford is attempting to convince city council to offer more to businesses like Rampen’s.

“Small businesses are not for the largest property tax hike in the city’s history. In fact, they’re crying out for some relief,” said Bradford.

Bradford is proposing increasing the current 15 per cent property tax cut to 25 per cent for nearly 30,000 small businesses across Toronto. The Small Business Property Tax Subclass was first introduced in November of 2021 to help those struggling during the pandemic.

He says the cut could be offset by an increase in taxes for larger commercial properties, like malls and office towers, to the tune of less than one per cent.

“Together, we can provide the type of real, tangible relief for small businesses and put policies in place to grow our economy and improve our city’s competitiveness,” said Bradford.

The Beaches-East York councillor claims that a small business in downtown Toronto could expect to save around $10,000 if the province matches the tax break, which they currently do at the 15 per cent rate.

The proposal has the backing of the Toronto Association of Business Improvement Areas (TABIA) which represents the city’s BIAs

“It’s that economic initiative that really needs to be brought forward and it’s those entrepreneurs, those people that are feeling some of these vacancies, that need that added support to make a go of it,” said John Kiru, Executive Director of TABIA.

The move is one in an ongoing political chess match at City Hall with the Mayor offering up her budget for council approval next week.

Bradford has been also vocal about his opposition to the proposed 9.5 per cent residential property tax increase and is looking for support to make changes.

“Fifty per cent plus one. That’s how it goes. If they could persuade all the councillors to do what they want to do, all power to them,” Chow said in response to Bradford’s request.

“I think that it can be a unifying element through a budget that will be divisive in some respect. This shouldn’t be a point of division,” said Bradford.

Debates over changes to the budget continue to take place behind closed doors, including the $8 million Chow has set aside for city council to use at its discretion.

Chow has said the moeny will be used for any additional priorities, which could include restoring snow-clearing services at the end of driveways, funding for festivals, the arts or community safety.

“There’s a lot of discussion with people among themselves, with me and say, ‘Okay, which one do you think?’ Well, you know, let’s call you folks come together and think about how to allocate some of the money,” Chow said.

The budget approval meeting is currently set for Feb. 14.