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Canada’s Businesses Shoulder Heavy Property Tax Burden

by Mike Godfrey, Tax-News.com, Washington

12 October 2004

A study commissioned by an association of commercial real estate owners has found that property taxes paid by businesses are more than double those paid by residential property owners.

The study, undertaken by tax consultants Derbyshire Viceroy Group, examined the tax ratios (the weight of taxes per $1,000 of assessment) paid by business and residential property owners in twenty cities.

It found that the cities of Toronto and Vancouver placed the heaviest tax burden on business, with ratios of 4.65 and 4.34 respectively. By contrast, 905 areas classified as suburbs typically have ratios of 2.4 to 2.5. The national average was found to be 2.65.

In Toronto, the study also found that businesses, which own 19% of the assessment base, paid 42% of property taxes. A similar statistic emerged from Vancouver, where businesses hold 24% of the property, but pay 50% of the real estate taxes.

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