WATCH: Mayor John Tory wants to get rid of the vacant commercial property tax rebate. @JustineLewkowic explains pic.twitter.com/F9nLZkVaE2
— NEWSTALK1010 (@NEWSTALK1010) January 16, 2017
Mayor John Tory wants the city to stop giving subsidies to landlords who keep their commercial store fronts empty.
He is calling for an end to the vacant property tax rebate, a cheque that eligible commercial property owners get when their space has not been rented for three consecutive months.
Empty commercial properties are eligible for a 30 per cent property tax rebate, while industrial lots can get 35 per cent back.
Mayor Tory says the rebate has cost the city $367-million over a dozen years. Ending the rebate can save the city about $22-million a year, according to staff.
It was introduced in the late '90s as a way to help landlords through tough economic times.
Tory says with the real estate market booming since then, the rebate essentially rewards property owners whose lots are left vacant, while they watch the value of their property rise.
The Beach Village business improvement area says empty stores also affect the vibrancy of a neighbourhood.