The Reform of Business Property Tax in Ontario: An Evaluation

Michael Smart

No 10, IMFG Papers from University of Toronto, Institute on Municipal Finance and Governance

Abstract: Business property taxes in Ontario have fallen dramatically in the past decade, due to a series of reforms mandated by the provincial government. In this paper, I discuss the likely impacts of the reforms on business location, wages, and land values, and the economic welfare of provincial residents. I use the reforms to estimate the responsiveness of business location and employment to local tax differentials. The reforms have caused a large shift in legal tax burdens from businesses to residents, particularly in Toronto and a few other cities. Based on my analysis, I conclude that the tax reform has had a small positive impact on employment in cities and on business productivity in Ontario.

Keywords: business taxes; business location; intermunicipal competition (search for similar items in EconPapers)
JEL-codes: H25 R33 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2012-07
New Economics Papers: this item is included in nep-pbe and nep-ure
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:mfg:wpaper:10

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