OTTAWA -- For many small businesses, operating during the pandemic has been a challenge. Closures, restrictions, and unplanned expenses have made for a difficult year.
Relief could soon be on the way for those businesses in 2021 in the form of a property tax reduction.
Jim Sourges owns The Plumbing and Electrical store in Bells Corners. He’s been behind the counter for more than 20 years.
“There’s been nothing even close to this at all,” he said.
Like many small businesses, operating during the pandemic has been difficult.
“Being closed for seven weeks to the public and then, when we opened, trying to get everybody back … a lot of staffing problems,” he said. “Just like every other store; we had to buy the PPE, we had to buy the plastic shields, we’ve had to buy the sanitizer. There’s certainly extra expenses that we’ve had to incur.”
The province is proposing a plan, where they would match municipal property tax reductions. MPP Lisa MacLeod made the announcement Tuesday afternoon.
“We are proposing to empower municipalities with a new tool, to provide property tax reduction for their small businesses,” MacLeod said.
The plan is for the province to match discounts from municipalities.
“If Ottawa decides to proceed with a 30 per cent discount, the owner would receive $5000 in municipal tax relief and $4000 from the province - that’s $9000 in total.”
As good as it sounds, the City says it’s not that simple.
In a statement to CTV News Ottawa, Mayor Jim Watson says, "Municipalities are prohibited from running deficits by provincial law. Therefore, another group – such as residential taxpayers – would have to make up for the difference in revenue.”
Instead, the City says they will continue to work with community stakeholders to find ways to support small businesses.
“…such as waiving patio fees this year and next, street closures that delivered over 500 paying seats for restaurants this summer, a Rural Tourism campaign, and a Property Tax Hardship Deferral Program which helped over 1,300 businesses manage their cash flow. These initiatives have all received the support of our economic development stakeholders, who are members of the Mayor’s Economic Partners Task Force,” Watson said.
MacLeod says, “We’re certainly urging The City of Ottawa to adopt these measures.”
Sourges is hopeful for any help.
“It’s really going to make a big difference towards being able to cover our expenses.”