Dozens of businesses along Yonge Street that indicated they may have to close in the face of dramatically higher property tax bills will be reassessed, Councillor Kristyn Wong-Tam said Friday.
Dozens of retailers and other service shops along Yonge Street were evaluated by the Municipal Property Assessment Corporation (MPAC) this year at dramatically higher values, causing their commercial property tax bills to spike, even double in some cases.
Paul Burford, the owner of House of Lords hair salon at Yonge and Isabella streets, indicated on Facebook his taxes doubled to $76,000 per year this year. He said that without a change, he would be forced to close by the fall after more than 50 years of business.
“(MPAC takes) a look at what these properties are selling for if there are no adverse conditions, and you have a willing buyer and a willing seller,” Wong-Tam said. “What we’re saying at the city is you need to take a bit more of a nuanced intelligent approach.”
As commercial property tax rates are calculated as a direct function of assessed property values, Wong-Tam said there was no consideration made of the fact that many business properties are quite small, limiting how they can be adjusted or expanded.
There is also a historic conservation district plan registered for the area, further restricting changes that can be made by property owners to enhance the revenue-generating capabilities of their businesses.
After a meeting Thursday between MPAC representatives, the property owners and city staff, MPAC said they will try and make things right.
“They’ve said they’ve made mistake – they are going to reassess those properties and they’re going to issue a notice of amended tax valuation later on in September,” Wong-Tam said.
She estimated as many as 90 businesses, House of Lords, may be impacted by the re-assessment.
