News and Insights

Tax Alert | Canadian Property Tax – COVID-19 Relief Measures

Tax Development Apr 03, 2020

As Canadian governments at all levels continue to respond to the COVID-19 pandemic, many real estate sectors are experiencing the financial impact of temporary closures.  As the single largest expense component of rent for tenants and largest fixed operating cost for business owners, property tax is an area that can be mitigated during this time of crisis to provide much needed financial relief.

To support businesses, several jurisdictions across Canada have implemented programs to defer deadlines for property tax payments, extend appeal filing periods, and suspend the imposition of penalty and interest charges. Ryan continues to track these announcements to bring you the most up-to-date information on deadline deferrals and other relief opportunities.

Changes to Appeal Deadlines

Certain jurisdictions have pushed back their deadlines to submit requests for reviews for property tax assessments.  These extensions will allow property owners and operators more time to challenge their property’s assessed value and reach an agreeable settlement with the assessing authority.

However, not all deadlines to appeal property assessments have been adjusted to accommodate COVID-19 precautionary measures.  Our team is monitoring announcements from provincial and municipal authorities for any updates on deadlines and potential deferrals.

To help you make an informed decision, Ryan has the following resources available to you regarding affected deadlines.

Original 2020 Provincial Assessment Review Deadlines and Pertinent Dates

If you have questions regarding your properties and what this means for you, please reach out to your Ryan representative.

Changes to Tax Bill Deadlines

To create relief for businesses affected by the pandemic, municipalities across Canada have provided extensions for tax bill payments and a grace period before which interest and late fees will be applied.

Tax bill payment deferrals range from 30 to 90 days, depending on the jurisdiction.  The predetermined grace period for interest and late fee waivers also varies across provinces and municipalities.

Should any of these periods be adjusted or if additional deferral programs become available, Ryan will provide updates on the Ryan COVID-19 Tax Information Hub.

Ryan’s Commitment

In the interim, to assist tenants and landlords alike, the Ryan team has deployed a simple, three-part plan to ensure that your property tax concerns will be met in a timely manner.  Ryan will ensure that you do not miss an opportunity for savings, especially at a time when they would be most meaningful.

1.  Communication.  Our team is dedicated to maintaining constant contact with our clients. Through email, telephone, and online meetings, we will remain available for updates and questions regarding your property assessment reviews, appeals, and potential relief measures.

2.  Property Inspections.  Due to current restrictions by local governments and health officials, any upcoming scheduled property inspections will be cancelled and postponed to a later date, if applicable.  Updates will be provided on a case-by-case basis, as we get further information. In the meantime, our team will be relying on other measures to complete our detailed analysis.

3.  Mediations and Hearings.  Our teams will work with assessing authorities to negotiate on your behalf remotely.  Updates will be provided should any meetings require rescheduling or cancellation, or if any deadlines or important dates are postponed.

Going forward, Ryan’s property tax practitioners will be looking to identify all forms of depreciation that impact real estate, including external obsolescence (factors external to the property that affect value) to account for the negative influences on value arising from the pandemic and its associated impacts.

As always, our role as your tax advocate and partner is the most essential service we offer you.  At a time when many businesses are facing negative economic impacts, Ryan is dedicated to finding solutions that will free your capital so that you can invest, grow, and thrive.

More Information

If you have any questions about how any of these property tax changes might impact your organization, please do not hesitate to contact your Ryan representative.