The article by Michael Smart "an evaluation of the reform of business property tax in Ontario" provided some good information however was too complex and example large municipalities only but the text, class discussion and researching works cited online provided further explanation. Overall, it's cyclical in nature, without commerce there would be neither employment nor ability for the general population to pay taxes. It was stated by instating lower business tax; business would increase by 10%. The argument is that taxes are a write-off and the cost of conducting business while location is critical and comes at a cost. I believe we have a far bigger crisis on our hands as it relates to hydro rates for all sectors. The ever-increasing hydro rates are causing increased detriment, for all.
Property taxation is the fundamental component of most municipal budgets throughout the world, is 5000 years old and remains problematic. The current form of property assessment/taxation is based on a four year system. Despite property being assessed higher, municipalities have to wait 4 years (phase-in) to generate the market value tax base. Conversely, if an assessment decreased, a
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Each new class had its own transition tax ratio. Bill 16 provided the ability to cap taxes for commercial/industrial, and multi-residential properties. These limits could not be exceeded unless the use of the property changed entirely. Municipalities are forced to determine if reductions are enough to offset caps, and if not, forced to reduce the overall tax ratio for the class and in turn create a necessary increase in the ratio of other classes. Prior to property tax reforms, businesses paid the much lower residential mill rate for tax as opposed to now where they pay the business occupancy