With five Biz Zones in Fort Rouge-East Fort Garry, I know how many small businesses and nonprofits have seen their revenue drastically reduced this year that is why Councillors worked hard to find ways that we could support our small businesses through the budget.
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.
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.