Toronto mayoral candidate John Tory is promising to expand and increase a small business tax break by five per cent if he’s re-elected this fall.
In a campaign announcement Friday morning, Tory said he is committed to helping small businesses recover from the COVID-19 pandemic and manage increased costs due to inflation and rising interest rates.
“There is a hangover, if I can call it that, that will cause businesses to have to repay some loans they've taken or even some loans that were from some of these very good government programs extended by the federal government. People don't realize, they thought it was all grants, well it's not,” Tory said at his announcement at a coffee shop in Toronto.
“In order to keep smaller businesses, the backbone of our city economy and of all the neighborhoods in the city, there's more to be done,” he added.
Tory’s plan contains four key actions to support small businesses:
- Expand the Small Business Property Tax Subclass to include more businesses that can receive the tax reduction
- Increase the tax discount for the small business subclass from 15 to 20 per cent, and work with the Ontario government to ensure they match the same discount on provincial property tax bills
- Improve the standards for approving licences for new business openings
- Appoint a councillor as the Mayor’s Champion for Red Tape Reduction to identify and lead efforts to make it easier for small businesses to open and stay open
Tory and council approved the Small Business Property Tax Subclass in November 2021, which provides a 15 per cent cut in the municipal tax rate for eligible companies.
The Ontario government also agreed to match the reduction in the provincial education portion of property taxes for eligible properties.
Tory says so far 29,000 eligible businesses are currently receiving both the municipal and provincial property tax discounts this year.
“And I should note, this is not some temporary tax relief measure. This is something that is being built into the tax system for the city so that people can make their plans to establish and renew and keep open small businesses…,” Tory said.
The councillor chosen by Tory to help identify red tape will be tasked with two priorities, including identifying where processes can be consolidated into a one-stop-shop and leading a procurement challenge with Toronto technology firms to create a one-window platform.
“The competition that we will have is going to be open to local technology companies (and) will have prizes. Together with the bragging rights that they all would be so fond of trying to have themselves to say they invented and came up with something that can help us to help small businesses in the city,” Tory said.
Tory said the goal is to have the competition and a one-window platform in 2023.
The other area of focus for the Mayor’s Champion for Red Tape Reduction will be to identify any services for businesses that can be digitized.
“Businesses still tell me, especially smaller ones, that our procurement processes, our permitting processes are still too cumbersome and still involve too much time being taken,” Tory said.
Tory added that the city will continue with CafeTO under his leadership, which provided many businesses with new or expanded patios to service customers outdoors throughout the pandemic.
Tory is seeking a third term in office and is among 31 candidates running for mayor.
His announcement today comes after prominent urbanist Gil Penalosa, who is thought to be Tory's biggest challenger, released a housing plan to create more affordable homes.
The municipal election is set for Oct. 24.
