Almost 1,000 more businesses will no longer pay business taxes as part of the preliminary 2021 Balanced Budget Update

Released: November 27, 2020 at 2:20 p.m.

Winnipeg, MB – The preliminary 2021 Balanced Budget Update proposes to raise the Small Business Tax Credit threshold from $35,700 to $44,200, which would eliminate the Small Business Tax for almost 1,000 more businesses in 2021, saving these businesses an average of $1,926.12 in 2021 and beyond.

“Aside from the devastating impacts to health in our community, there is no doubt that small businesses have been some of the hardest hit from a financial perspective during the pandemic,” said Mayor Brian Bowman. “The City took action to defer taxes for residents and businesses facing financial difficulty as a result of the provincial public health restrictions, and exempting nearly one thousand more businesses from paying the business tax is another way the City can help today and long after the pandemic concludes.”

This measure would mean that approximately 55 percent of all businesses would receive a full credit of their business taxes in 2021. The business tax rate would also remain frozen at 4.84 percent for 2021.

This builds on other measures taken to support businesses in the preliminary 2021 Balanced Budget Update, including the $3 million COVID-19 Economic Support Grant Program for small businesses and not-for-profits that are required by the Provincial Government to temporarily cease operations or close their physical locations to the public as a result of the pandemic, and $3.78 million to support a deferral of property and business taxes in 2021.

This also builds on other supportive actions taken by the City during the pandemic to help ease the burden on businesses, such as deferred residential and business taxes announced on April 3, 2020, a flexible temporary patio permitting program, offering one-hour complimentary parking at all metered locations throughout Winnipeg, and adding temporary 15-minute loading zones in various locations throughout the Downtown and the Exchange District to benefit local businesses.

“Many small businesses have been hurt by COVID-19 restrictions and need financial relief,” said Scott Gillingham, Chairperson of the Standing Policy Committee on Finance. “The City is working within its limited resources and balanced budget framework to help the small business sector during this time of uncertainty."

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