On November 10, 2020, the Ontario Government released details on their efforts to reduce taxes on employers as a component of the 2020 Ontario Budget. The notable proposed changes include reducing business property tax, lowering the Business Education Tax, making the 2020 increase in Employer Health Tax exemption permanent, and providing $1,000 in grants for the costs of personal protective equipment.
Property Tax Relief
The provincial portion of business property tax rates will be reduced to a rate of .88 percent for over 200,000 properties. Municipalities will also have “the ability” to reduce property tax for small businesses with a provincial commitment to “consider matching these reductions.”
Business Education Tax (BET)
Starting on January 1, 2021, the Business Education Tax will be reduced to .88 percent for over 200,000 employers.
Employer Health Tax (EHT) Exemption
In March of 2020, the Employer Health Tax exemption was doubled to $1 million for 2020. The same EHT exemption amount will apply in 2021.
Personal Protective Equipment (PPE) Grant
Businesses with two to nineteen employees in the retail, accommodations and food services, repair and maintenance, and personal and laundry services sectors can apply for a grant of up to $1,000 for the costs of PPE through the $60 million Main Street Relief Grant, which is available online starting November 16, 2020.
For full details on the proposed changes to business taxes in Ontario, you can visit this government of Ontario webpage. If you have any questions about how these changes may impact you or your business, please contact your Bateman MacKay LLP Business Advisor.
