Decoding Toronto’s Property Tax Deferral for Industrial Properties

To assist local manufacturing firms facing losses because of recently introduced or increased tariffs, the City of Toronto recently approved a plan that will allow certain taxpayers to defer payment of 2025 property taxes without interest or penalty for up to six months. However, the scope of the program is restricted to industrial properties.

Under Ontario property tax legislation, “industrial” properties include those “used for or in connection with manufacturing, producing or processing.” Taxpayers wishing to participate in the program will need to provide evidence of the negative impacts of tariffs on their operations.

To be eligible for the deferral, the following requirements must be met:

• The entire property must be classified for property tax purposes as industrial. This includes the general industrial (IT), large industrial (LT), and new industrial (JT) tax classes.

• The property tax account must be paid through May 31, 2025.

• Applications must include documentation providing evidence of a “disruption of business operations or reduced business income” beginning on March 4, 2025, as compared to the same period in the prior year.

• An authorized representative of the impacted business (i.e., owner or signing officer) must sign a declaration certifying that the information provided is true and complete.

• The application must be submitted by the property owner, or an authorized (in writing) representative, before the deadline of October 31, 2025.

Industry experts have expressed concern that the scope of the program is too narrow. The deferral will not be available for warehousing, distribution, or truck terminal properties, as these properties are not classified as industrial for property tax purposes.

In addition, manufacturers occupying a unit within a multi-tenanted facility will not be eligible for the deferral if any of the other units in that facility are in a non-industrial tax class. Where eligible properties are not owner-occupied, affected tenants will need written consent from owners to seek the property tax payment deferral.

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals.