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Small business tax subclass

Overview

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.

Tax subclass details

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 reduced tax rate 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 of Ottawa will also provide a the list of qualifying properties for the new Small Business Property Tax Subclass on Ottawa.ca, published by January 31 of each tax year, as required by provincial regulation.

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

Request for Reconsideration (RfR) and appeals

Request for Reconsideration

If you believe your property should be eligible for the new subclass but is not on the list posted on Ottawa.ca by January 31st, file a Request for Reconsideration before May 1st of each year.

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.

The deadline to file an RfR to request a property be included in the small business subclass is 90 days after the date the Small Business Subclass listing is posted on Ottawa.ca for public viewing. The Small Business Subclass listing is published each taxation year on January 31st. Please include your supporting documentation when submitting your Request for Reconsideration.

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.

Timeline

Small Business Tax Subclass approved by City Council October 13, 2021
List of eligible properties sent to MPAC October 2021
MPAC provides all property information updates to the City of Ottawa December 2021
List of eligible properties posted to Ottawa.ca January 31, 2022
Targeted mailout to qualifying properties and communication campaign with stakeholder assistance Early 2022
Deadline to submit a Request for Reconsideration (RfR) April 2022
Discounted rate applied on Final Tax Bill June 2022

Contact us

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