TABIA Property Tax Update – 2025 Annual General Meeting
Good evening, everyone. Let me start with the good news: I have a property tax update.
And now the bad news: I have a property tax update.
You’ll recall that we are still living in a world where property taxes in Ontario are calculated based on 2016 values. Yes, 2016—back when TikTok didn’t exist, Trump hadn’t been elected the first time, and housing prices were merely outrageous instead of laughably delusional. That was the last time the Province assessed property. The reassessment scheduled for 2020 was cancelled due to COVID, and ever since then, it’s been one long bureaucratic shrug.
So here we are. Nine years later. Basing commercial property taxes on what your street looked like before half the buildings were redeveloped or sold to REITs. This isn’t just out of date—it’s out of orbit.
Now, here’s the kicker. Residential and industrial properties have seen their values soar in that time. Anyone with a garage in Leslieville is sitting on a million bucks. And let’s not even talk about warehouse space in Etobicoke—it’s basically the new gold. But for many commercial properties—especially our beloved main street storefronts—values haven’t climbed as quickly.
So in theory—and I stress theory—when the Province finally updates assessments, the commercial sector may carry a smaller share of the tax burden. Again, that’s theory. We’ll believe it when we see it. And we’ll see it if—and that’s a big if—Queen’s Park decides to confront the inequity baked into today’s system by undertaking a province-wide reassessment.
The Political Landmine of Reassessment
A province-wide reassessment is like flossing. Everyone agrees it’s necessary. Nobody wants to do it. Because once you update property values, things shift—between tax classes, within tax classes, between neighbours. And when things shift, people complain. Loudly. Nobody likes their taxes going up, even when fairness demands it.
But here’s what often gets lost in the shouting: a reassessment doesn’t increase the city’s tax revenue. It’s not a tax hike. It’s just a rebalancing of who pays what. If your property value goes up more than the average, your share increases. If it goes up less than average, it decreases. Stay on the average? Your bill stays the same.
It’s called revenue neutrality. Radical concept, I know.
And yet, here we are in 2025, still using 2016 values to divide up the bill. That’s not just outdated—it’s unfair. Some property types—hello, residential and industrial—have appreciated spectacularly. But they’re still paying taxes like it’s 2016, when avocado toast was a punchline and not a $15 brunch.
Meanwhile, many small commercial properties haven’t appreciated nearly as much. But they’re paying more than their fair share.
That’s why a province-wide reassessment isn’t just overdue—it’s essential.
And while we’re at it, let’s stop pretending this has to happen every four years like some kind of tax-time Olympics. British Columbia does it every year. And you know what? People get used to it. Like turning the clocks back. Or renewing your Netflix subscription. It becomes routine. Predictable. Fair.
Because fairness in taxation isn’t just about the rate you pay. It’s about when and how that rate gets decided. And reality, my friends, left 2016 behind a long time ago.
The Small Business Tax Subclass: A Hard-Won Victory
Now let’s talk about something that actually has changed: the Small Business Property Tax Subclass. And yes—this is the moment where we allow ourselves a little optimism, because the creation of this subclass wasn’t just a policy win—it was a TABIA win.
From day one, we were at the table. We pushed. We modeled. We debated definitions. We brought MPAC, the City, and the Province together. And we did it with one thing in mind: keeping our main streets alive.
The result? A subclass that gives eligible properties a 15% reduction on the municipal portion of their tax bill. That’s real relief—for nearly 30,000 properties across the city. Of those, 14,824 are in BIAs. That’s more than half. That’s your members. That’s our voice.
Is it perfect? No. Eligibility is still limited. Too many strip malls, mixed-use buildings, and tenants fall through the cracks. And yes, landlords passing on the savings remains a challenge. But let’s be clear: this is the most significant structural property tax reform for small business in a generation. And it exists because TABIA made it happen.
More importantly, it’s not a one-time fix. The City has committed to reviewing the program this year for updates in 2026. We’re working closely with them to model scenarios, close gaps, and make improvements. This isn’t a static win. It’s a foundation to build from.
This was never about a silver bullet. It’s about nudging a tax system that was never designed for vibrant, diverse, independent business districts—and making it fairer, one step at a time.