A new proposal backed by Mayor John Tory would cap property tax increases on businesses and multi-residential dwellings at 10 per cent per cent in 2018, regardless of the growth in the assessed value of a given property.

The proposal, which will be considered by council later this month, comes after a number of Yonge Street businesses raised concerns about tax bills that went up by as much as 100 per cent as a result of soaring property assessments.

If the proposal is ultimately approved by council, the city will cap the maximum increase in 2018 at 10 per cent for all commercial, industrial and multi-residential properties.

The proposal says the measure should be “viewed as an interim strategy, pending further analysis of additional options.”

"I'm dedicated to making sure Toronto remains affordable for everyone including the many businesses that make our streets so vibrant," Mayor Tory said in a press release indicating his support for the proposal. "These changes will help ensure we mitigate the impact of reassessments on businesses."

According to the staff report, there was a total of 5,415 properties in 2017 that saw their total tax bills increase by more than 10 per cent, 424 properties that saw their bills go up by more than 50 per cent and 118 properties that saw their bills rise by at least 100 per cent.

Reports have previously suggested that many of the highest increases occurred along Yonge Street where small businesses saw their assessments skyrocket due to a policy which stipulates that properties be evaluated based on their “best use” and not their actual use.

That effectively meant that some book stores, coffee shops and other small businesses were expected to pay taxes in line with what they would be charged if they redeveloped their properties for a more lucrative purpose, such as a higher density tower.

“In many cases, these tax increases were either passed on to tenants through increased rents, or borne directly by business tenants under net leases,” the report said in explaining the need for the new policy for 2018. “This gave rise to concerns about the impacts on businesses, particularly small independently-owned entities or single tenant proprietorships, and the potential associated impacts on the character and viability of entire neighbourhoods and retail districts.”