A Toronto councilor is proposing tax cuts to help small businesses during budget deliberations

With the final approval of Toronto's budget fast approaching, some of Mayor Olivia Chow's opponents are trying to make changes to benefit some of the city's small businesses.

Chris Rampen, owner of Nunu Ethiopian Fusion on West Queen West, said his restaurant needs help. “We deal with a thousand cut deaths, and one cut counts for less.”

In the wake of the Covid-19 outbreak, Rampen wants the city to step in and offer relief. Councilman Brad Bradford is trying to convince the City Council to offer more to businesses like Rampen.

“Small businesses are not for the biggest property tax increase in city history. In fact, they're asking for some relief,” Bradford said.

Bradford is proposing to raise the current 15 percent property tax to 25 percent for about 30,000 small businesses in Toronto. The Small business property tax subclass first introduced in November 2021 to help those struggling during the pandemic.

He said the cut could be offset by less than a one percent tax increase on large commercial properties like malls and office towers.

“Together, we can offer real, tangible relief to small businesses and create policies that grow our economy and make our city more competitive,” Bradford said.

Counsel for Beaches-East York, a small business in downtown Toronto, says it could save about $10,000 if the province matched the tax breaks, which currently run at a rate of 15 per cent.

The proposal has the support of the Toronto Business Improvement Areas Association (TABIA), which represents the city's BIA.

“This economic initiative really needs to be pushed forward, and those entrepreneurs, the people who are feeling some of these gaps, need additional support to make it happen,” said John Kiru, executive director of TABIA.

The move is part of a political chess match at City Hall, where the mayor will present the budget for council approval next week.

Bradford has also voiced opposition to a 9.5 percent residential tax increase and is seeking support for changes.

“Fifty percent plus one. It will happen. If they can convince all the council members to do what they want, all power to them,” Chow said in response to Bradford's request.

“I think it can be a unifying element through a divisive budget in some sense. It shouldn't be a dividing point,” Bradford said.

Discussions continue behind closed doors to amend the budget, including $8 million that Chow earmarked for the City Council to use at its discretion.

Chow said the money would be used for any additional priorities, including restoring snow removal services at the end of roads, funding festivals, the arts or public safety.

“People would say to each other, to me, and 'Okay, which one do you think?' is discussed a lot. You know, let's invite you, let's get together and figure out how to distribute some of the money,'' Chow said.

Currently, the budget approval meeting is scheduled for February 14.