Dear Minister Fedeli, On…

Dear Minister Fedeli,

On behalf of the West Queen West Business Improvement Association, I am enclosing a letter previously submitted to Minister Sousa in support of our 225 businesses concerning commercial taxes. Our members have incurred not only double but triple-digit increases. No small businesses can be expected to pay such exorbitant increases and at the same time turn enough of a profit to cover not only their bills and inventory but all the other expenses required in running a small business. We were disappointed that Minister Sousa chose not to reply to us. MPAC is basing their assessments on an equation that isn't transparent but speculative and doesn't serve small businesses but does serve developers.

The letter was positively responded to by Mayor John Tory and others copied on the enclosed and municipal changes have been introduced to put a cap on the increases as well as examine what else can be done. MPAC, however, is in dire need of being reassessed from a provincial level for transparency and equity, especially when it comes to small businesses. Small businesses serve as the number one employer consequently it’s vital that checks and balances are put in place to keep that landscape flourishing and that commercial taxes are fair, equitable, transparent and not based on highest and best use. Currently, our members are being taxed on speculative possibilities, not what is, and that is unacceptable.

The enclosed letter explains our issues, and I wanted to ensure you are kept abreast as to what all small businesses are currently contending with and the vast inequities that need to be addressed by the Provincial Government.

Thank you.

Djanka Gajdel
Treasurer
West Queen West BIA

cc: Rob Sysak
Executive Director

West Queen West Business Improvement Association
789 Queen Street West, P.O. Box 598 Toronto C
Toronto, ON M6J 3R9

The Honourable Charles Sousa
Minister of Finance
7 Queen's Park Crescent, 7th floor
Toronto, Ontario M7A 1Y7

Attention: Minister of Finance Sousa

Dear Minister Sousa,

Re: MPAC and its adverse effects on Small Business

I am contacting you on behalf of the West Queen West Board (WQW) and our 225
Businesses. We have heard loud and clear from our members that the MPAC equation
that deals with the assessing and classifying of commercial properties for small
business is inequitable and flawed. The comparison for the assessments fails in the areas
of fairness and transparency and gravely affects the health of small businesses and
neighbourhoods throughout the city.

Property taxes are based on the MPAC assessed value of a property. Currently, MPAC
assesses a property according to its “highest and best use,” and not according to the
“current use of a property.” This method of assessment has caused incredibly high and
unfair increases in the property taxes for small businesses in Toronto, and have begun
to threaten their survival. Some small business have seen increases of up to 500%.

A baker can only sell so many loaves of bread a month; even if they were to be open
24/7; and for some that will still not begin to pay what they owe. Tax calculated not on a
bakery, but best and highest use is principally wrong. When one is being denied their
livelihood because all their profits are being extracted to pay their property tax, we have
a problem. Instead, businesses are being forced to close their doors, causing vacancies
throughout the city to grow at a frightening number, and for those barely surviving hiring
more employees is not financially feasible.

The notion that small businesses can sell their building and make a profit is a
perception issue. Most leverage their collateral so they can purchase a property or
enhance their operations. They are responsible for reaching a point of maturity in their
business operations to ensure they pay back any such loans, and what is left ultimately
becomes their pensions. They do not have the safeguards such as a government
pension, augmented health care, vacation time, sick days, to name just a few. Instead,
they have many provincial and municipal costs that they are consistently asked to
shoulder.

The fallout to both businesses, employment and neighbourhoods are dire and should be
A concern. The current tax as Mayor John Tory mentioned is ‘distorted.’ Failing to
recognize the CURRENT use of the property, consequently creating inflated valuations,
and making it impossible for businesses to satisfy the financial mandate demanded of
them.

As stated on The Ontario Ministry of Labour website, “Small businesses represent 95%
of all employers in Ontario, and they employ 28% of Ontario’s workers...we know that a
commitment to health, safety and fairness makes good business sense.” Small
businesses play a vital role in the economic success of Ontario.

The fact that the Provincial Government is appealing its assessments proves how
dysfunctional MPAC and its method of evaluation is. When the body that is drafting
the legislation is challenging it themselves, you can imagine how unacceptable and
burdensome it is for our small businesses.

WQW would be happy to be part of a task force to help change this and will not accept
what is speculative just as your government has refused to. We’re asking for the same
thing you desire, assessments that are fair and equitable. That intention should be the
foundation reflected in all legislation.

Toronto is known as a city of neighbourhoods, and Toronto’s independent small
businesses are, at the heart of those communities. People want to live in healthy
districts and neighbourhoods. Healthy and prosperous cities have repeatedly been
proven to be the foundation for wealthy countries.

WQW members are demanding responsible action from their elected government
officials. Perhaps it is time for a judicial review pertaining to this matter. I’m asking you
on behalf of the WQW Board and our WQW members, to do the right thing, and revamp
this wildly inequitable equation and reflect the actual use of the property.

I look forward to your reply.

Thank you.

Djanka
Treasurer
West Queen West BIA

Mayor John Tory
City Hall, 2nd Floor
100 Queen St. W.
Toronto, ON M5H 2N2

John Kiru
Executive Director
Toronto Association of Business Improvement Areas
100 Princes’ Blvd.
Toronto, ON M6K 3C3

Christine Van Geyn
Ontario Director
Canadian Taxpayer’s Federation
260 Adelaide Street East, P.O. 38
Toronto, Ontario M5A 1N1

Dan Kelly
President
Canadian Federation of Independent Businesses
401-4141 Yonge Street
Toronto, Ontario M2P 2A6

Rob Sysak
Executive Director
West Queen West Business Improvement Association