Minister Phillips has outlined Ontario's 2020 Budget as the next phase of Ontario's Action Plan. Through three main pillars of Protect, Support, and Recover the government is making $45 billion ($30 billion already announced) in commitments over the next three years to manage the pandemic, focus on addressing the COVID-19 challenges and economic difficulties, and support key investments to deliver on an economic recovery.
Budget Impacts to Municipal Governments:
Business Education Tax
The government is lowering the Business Education Tax rates in recognition of this long-standing municipal concern. These rates will be lowered 0.88 % (10 basis points lower than 0.98%) and the Province is expected to adjust payments to school board to off-set reductions in education property taxes. The Province expects this to produce $450 million in savings for 2021.
Property Tax Relief for Small Business Municipalities will be provided flexibility to target property tax relief for small businesses with a provincial commitment to consider matching these reductions. Through a new optional property subclass for business properties, municipalities will be able to define this for their own local needs.
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Additionally, existing property tax exemption for Ontario branches of the Royal Canadian Legion will apply for 2019 and subsequent tax years to Ontario units of the Army, Navy and Air Force Veterans in Canada.
Addressing Speculative Sales
Addressing speculative sales amendments to the Assessment Act are being introduced to allow for the potential creation of optional new assessment tools to address concerns regarding redevelopment and speculative sales. This reflects an earlier private member’s bill (i.e. Bill 179) put forward by MPP Robin Martin.
Broadband and Infrastructure
The Budget confirmed recent announcements on broadband and cellular as well as infrastructure investments. Yesterday, the government announced an additional $680 million to support broadband and cellular connectivity for unserved and underserved communities, including a doubling of the ICON program to $300 million. Also noted was the recent COVID-19 Resiliency Stream of the Investing in Canada Infrastructure Program, which makes $250 million of provincial and federal funding available to municipalities with no local cost match required.