Small business tax subclass

On October 13, 2021, City Council approved the creation of a new Small Business Tax subclass. The introduction of the Small Business Property Tax Subclass is a long-term tax policy tool. It creates tax parity between small businesses in small stand-alone properties and small businesses operating in larger shopping malls that already benefit from the lower Shopping Property Tax rate.

The new Small Business Property Tax Subclass demonstrates the City’s recognition of the contribution of small businesses to employment, neighbourhood vibrancy, and quality of life. Thriving main streets are foundational to a well-rounded economy. The new Small Business Property Tax Subclass will benefit 5,800 properties or over 10,000 small businesses.

The new tax subclass will provide eligible properties with a 15% reduction in property taxes phased in over two years with no impact on residential property taxes. The Province also recently announced it will be matching the 15% reduction for the education tax portion. The reduced tax rates will show on the Final Tax bill.

Eligibility

City staff have used data available from the Municipal Property Assessment Corporation (MPAC) to determine which properties qualify as a small business. Small businesses will be determined using the property tax class, property size, and property code. For full details on the criteria of the subclass, please refer to Sections 5 and 6 of the by-law enacted on October 27. 

Notification

Qualifying property owners will receive the following:

• A Property Assessment Notice (PAN) from the Municipal Property Assessment Corporation (MPAC) near the end of the year to advise of a change in the property's classification.
• Mailed letter from the City of Ottawa confirming eligibility. 

The City will continue to work with the stakeholders to effectively communicate these changes to small business property owners and tenants.

Please see below for the list of qualifying properties in 2024:

Small Business Roll Numbers 2024

The list will be published annually by January 31, as required by provincial regulation.

Request for Reconsideration

The owner of a property may file a Request for Reconsideration (RfR) with respect to whether land should be included in the small business subclass. The RfR is filed with the Program Administrator of the City of Ottawa instead of the procedure set out in section 39.1 of the Assessment Act, R.S.O. 1990, c. A.31. 

A Request for Reconsideration may be submitted using the online form below for one of the following reasons:

• If you believe your property should be eligible based on the criteria set out in the by-law for the new tax subclass but is not on the list posted on Ottawa.ca by January 31. The applicable criteria are:
  • Property Code
  • Incorrect Size
• If you disagree with a letter of determination sent to you advising you no longer qualify for the subclass.

The deadline to apply for a Request for Reconsideration is before May 1, 2024. A decision will be made within 90 days of submission, and a confirmation of acceptance or denial will be sent to the property owner. Please include your supporting documentation when submitting your Request for Reconsideration. If you are an agent acting on behalf of the owner, an authorization letter must be attached to the form. 

To submit an application, please complete the request for reconsideration form.

Appeals

An Appeal may be filed by the property owner after a determination has been made for a Request for Reconsideration by the Program Administrator with respect to whether the property is included in the Small Business Subclass.

An Appeal shall be filed with the Appellate Authority of the City of Ottawa instead of the procedure set out in section 40 of the Assessment Act, R.S.O. 1990, c. A.31.

The deadline for appealing the determination of the Program Administrator to the Appellate Authority is 90 days after the Program Administrator has given notice of the decision to the property owner or provided the property owner with the results of a reconsideration, whichever is applicable.

A fee of $318 applies to file an appeal.

To submit an appeal, please complete the application for request for appeal form. 

For questions regarding the small business tax subclass, please email sbts_sipe@ottawa.ca or contact Revenue Services at 613-580-2444.