Local councillor calls for property tax break for industries and small businesses facing tariff threats as city budget is debated today

Bradford made the proposal during a meeting and news conference on Monday, Feb. 10, at Leland Industries in Scarborough.

“Workers and business leaders are worried, and they deserve more than words of encouragement – they deserve action. That is why I am asking my fellow Councillors and the Mayor to stand with me tomorrow and take real action to protect Toronto jobs,” said Bradford.

Bradford’s initiative to protect Toronto’s economy comes in response to American President Donald Trump’s recently announced 25 per cent tariffs on Canadian steel and aluminium, as well as threats to impose tariffs on all other Canadian goods in less than a month.

“With the threat of U.S. tariffs still looming, Toronto’s manufacturing community is worried about its ability to continue to grow our city’s economy while providing good jobs,” said Paul Scrivener, Director of External Relations for Toronto Industry Network in a news release.

“It is critical that Toronto manufacturers make more products that are needed here. We want governments at all levels to stand in partnership with us and support us. Toronto Industry Network members would welcome property tax relief to ensure we remain competitive and able to withstand the economic shocks that are on the horizon.”

Bradford’s proposal seeks to amend Chow’s budget, which will be voted on by council at its special budget meeting today (Tuesday, Feb. 11).

“We need to protect Toronto’s economy by making our city the most attractive place in the world to build a business, invest capital, and create jobs. We do that by creating a more competitive business environment with lower taxes, less red tape, and fewer bureaucratic barriers. This proposal is a concrete step in that direction,” said Bradford.

The city’s latest tax increase will fund its $18.8 billion 2025 budget; a $1.8 billion increase compared to last year. City staff said the budgetary increase is a result of “inflation and growth.” 

Following a tax hike of 9.5 per cent last year, the city budget’s latest tax increase includes a 5.4 per cent property tax hike, as well as a 1.5 per cent increase to the city-building fund.

The city says the latest increase will cost property owners an extra $268.37 a year for an average home with an assessed value of $692,031. The latest budget will also increase fees for water and garbage by 3.75 per cent.

The 2025 budget also includes money for broadened food programs, extended public pool hours, increased park staff, a freeze on TTC fares, more traffic wardens, and union-negotiated wage increases for city staff.

According to the proposed budget, the City of Toronto is expected to collect $121.6 million in taxes from 3,398 industrial properties across the city.

Bradford’s proposal is hoping to alleviate financial strain on the industrial tax rate; which is the highest of the property tax classes. His plans would see the 25 per cent tax reduction funded by the tax stabilization reserve.

In recent public consultations, Chow mentioned city plans to boost tax relief for the most vulnerable by increasing the property tax deferral and cancellation income threshold by five per cent to $60,000 for seniors and people with disabilities.

For small businesses experiencing financial restraint due to taxes, the Small Business Property Tax Subclass offers a lowered property tax rate for eligible small businesses across the city. The tax rate reduction for eligible businesses is currently 15 per cent of the commercial rate.

However, many businesses within the industrial sector fail to meet the eligibility criteria for this tax reduction, and are concerned about the lasting impact tariffs will have on their bottom line of operations.

“Tax relief for manufacturers from the City of Toronto is very welcome. Our economy is suffering from a productivity problem that is damaging our standard of living,” said Catherine Swift, President of the Coalition of Concerned Manufacturers & Businesses of Canada.

Bradford’s proposal would be made possible by increasing the existing Small Business Property Tax Subclass by 10 per cent.

With his proposal, Bradford seeks to offer an immediate 25 per cent tax reduction to nearly 3,500 industrial businesses across the city, which would result in average savings of more than $10,000 per business.

Nearly 10 per cent (approximately 127,380) of city jobs are in the manufacturing sector – an industry which has seen an annual decline of 1,140 jobs according to the 2024 Toronto Employment Survey. With America’s recently proposed tariffs, employment within industry is expected to decline even further.

By lowering taxes for industry and small businesses, Bradford hopes to create an environment that allows Toronto’s economy to thrive.

“Small businesses are the lifeblood of our main streets. At a time when our economy is under attack, this property tax relief will provide tangible help to small businesses when they need it most,” said Bradford.

Earlier today in a media briefing prior to the start of the budget meeting, Chow said she does not support Bradford’s proposal to use reserve funds to provide a 25 per cent property tax cut for industries and small businesses.

“This is the worst time one would raid a reserve fund,” said Chow. “Why? Because we have a senseless trade action from the south. We are facing economic hard times.”