What is Commercial Property Tax?
1 min read.
Commercial property taxes are necessary for properties used for business purposes, including office buildings, retail stores, warehouses, and factories. These taxes are imposed by state or local governments and are based on the property’s assessed value. A tax assessor determines this by considering factors such as size, location, and condition.
In early 2023, the Toronto government proposed a 3.5% increase in commercial property tax rates. Commercial properties are typically taxed at a higher rate than residential properties for two main reasons. Firstly, commercial properties generate more income, allowing them to bear a higher tax burden. Secondly, they require more city services, such as water and electricity usage, waste disposal, and environmental considerations.
Commercial property owners are responsible for paying these taxes on time, avoiding penalties and fines for late payments. Therefore, it is essential to budget for taxes and clearly understand the tax laws in various regions to avoid legal or financial issues.
Reference
Appendix A: 2023 property tax rates and related matters. (n.d.). Retrieved April 25, 2023, from https://www.toronto.ca/legdocs/mmis/2023/cc/bgrd/backgroundfile-234150.pdf
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