Vancouver’s downtown area has Canada’s highest commercial-to-residential property tax ratios, followed by Toronto and Montreal, according to a survey released today by the Altus Group for the Real Property Association of Canada (REALpac).
The 2012 Property Tax Rate Analysis found the commercial-to-residential tax ratios for those three cities to be in excess of 4:1.
REALpac CEO Paul Morse said the ratios are “deeply” concerning, because the damage that the inequitable commercial-residential tax has on an area’s ability to attract jobs and businesses.
“Our urban centres are vitally important and at the moment are expanding due to tenant demand and relatively low interest rates,” said Morse. “High realty taxes are a barrier to business growth and, in the long run, put a chokehold on investment in downtown office, hotel, apartment and retail property development.”
REALpac states that a healthy commercial-to-residential tax ratio would be around 2:1. Morse said this ratio could be achieved by gradually reducing the commercial rate.
“Jobs are at the core of a thriving city economy,” he said. “With so many fundamental shifts taking place in our global economy, Canadian cities need to do what they can to accelerate business growth around where people want to live, not scare it away.”
