The Reform of the Business Property Tax in Ontario

Michael Smart presents the findings of his recent IMFG Paper, which explores the impacts of business property tax reform in Ontario between 2001 and 2004. This reform reduced the taxes paid on commercial and industrial properties by about $2 billion per year. Smart discusses whether business location and employment decisions are responsive to local tax differentials, and the likely impacts of the reforms on businesses, land owners, and downtown and suburban residents.