May 2021 Advocacy Update

Budget 2021 released with $101.4B in new spending

Government of Canada 

Of particular relevance to NAIOP members, the Budget proposes to:

• Extend the wage subsidy until September 25, 2021 and gradually decrease the subsidy rate beginning July 4 to allow for an orderly phase-out of the program
• Require that any publicly listed corporation receiving the wage subsidy and found to be paying its top executives more in 2021 than in 2019 will need to repay the equivalent in wage subsidy amounts received for any qualifying period starting after June 5, 2021 and until the end of the program
• Extend the rent subsidy and Lockdown Support until September 25, 2021 and also gradually decrease the rate beginning July 4 to allow for an orderly phase-out of the program
• Extend the application deadline for Canada Emergency Business Accounts to June 30, 2021
• Introduce the new Canada Recover Hiring Program that would offset a portion of the extra costs employers incur as they reopen (up to 50%), either by increasing wages or hours worked, or hiring more staff. Eligible employers would claim the higher of the Canada Emergency Wage Subsidy or the new proposed subsidy.

LOOKING FOR MORE? The full text of the budget can be found here.

Toronto review of growth-related funding tools delayed to June

City of Toronto

This includes DCs, CBCs, and alternative parkland rates. A staff report outlining the details of the review’s work plan is expected at the June 1 Executive Committee meeting. (This was previously expected April 1).

Updates to follow.

Small Business Subclass Update

Our tax coalition (REALPAC, Financial District BIA, NAIOP, TABIA, BOMA) has submitted a letter to the Ontario Ministry of Finance and Mayor Tory’s office regarding its forthcoming small business property tax regulations. We have requested that the Ministry host a roundtable discussion with our industry group to discuss these concerns and the Ministry’s plans for the regulations in further detail. We are continuing our advocacy efforts with the coalition and will keep you updated on next steps.

NAIOP participates in Property Tax Assessment consultations 

During 2020 we participated in a stakeholder consultation process conducted by the Ministry of Finance. One of the concerns we identified during this consultation is the 4 year reassessment cycle in Ontario. Significantly, the property reassessment planned for 2021 has been postponed for 2 years. We intend to continue to express our concerns about what is the longest assessment cycle in Canada and highlight the merits of reassessments either every two years or annually when the consultation process resumes later this year.

NAIOP participates in City of Toronto consultation on water fees 

NAIOP has been invited to participate in the City of Toronto’s consultation on Water Fees, Charges and Programs. On Friday, May 7 City Staff presented the options for stakeholder feedback. Topics for discussion included:

• Toronto Water’s support programs for industrial, commercial and institutional customers
• The City’s Sewers By-law, Municipal Code Chapter 681
• Fees and charges options including an administrative water charge, a stormwater charge for industrial and commercial businesses, and a stormwater charge for owners of commercial parking lots
• Stormwater management incentive options for industrial and commercial businesses

We look forward to providing updates on next steps.

Financial District Pilot Zone – Reopening and Recovery Playbook

The Toronto Region Board of Trade, in collaboration with the Financial District BIA and others, has released the “Financial District Pilot Zone Playbook” for reopening and recovery. The Playbook provides an overview of the value of the Financial District and a mitigation toolkit that includes leading practices which will continue to be updated on the website.