09-05-2025
- Business
- Hamilton Spectator
‘Not financially possible': Tariff-related tax deferrals not recommended, staff advise Burlington council
A City of Burlington staff recommendation not to offer tax deferrals to residents and businesses impacted by tariffs is 'extremely short-sighted' according to the local chamber of commerce.
A staff report to the May 12 committee of the whole meeting states 'implementing a property tax deferral program for all property classes is not financially possible because of cash flow requirements, resourcing and system constraints.'
According to the report, legislation requires the city to collect and pass on property taxes to Halton Region and two school boards by set due dates.
'Without these due dates being modified, the city has very limited opportunity' to defer property taxes, the report states.
The report states the city's cash flow cannot support a broad property tax deferral program under current legislation.
'A negative cash flow position indicates the city will not have sufficient cash to meet its operational needs, financial obligations and potentially requiring drawing on investment funds (and) delay capital investments,' the report states. 'A negative cash flow position is not an option for the city.'
Staff also do not recommend adjusting or deferring user fees and license fees for anyone impacted by tariffs.
'Without financial support from other levels of government … doing so could negatively impact the approved budget at year-end and may require drawing on reserve funds to cover the shortfall,' the report states.
Staff reviewed a possible targeted tax deferral program for the industrial and manufacturing sector. The report states council could direct staff to proceed with a six-month industrial property tax deferral for industrial property owners impacted by U.S. tariffs.
But the report states: 'Staff do not recommend implementing a tax deferral program for industrial properties due to the potential lost municipal revenues … cash flow risk and possible policy implications. Adopting such a program could set precedent that extends beyond the municipal funding model and may overlap with senior government programs.'
Review of potential interest-free development charge programs will be included in a report to the June 2025 committee of the whole.
In March,
city council directed staff to report on potential interest-free deferrals
of property taxes, development charges and other city fees to 'individuals, companies or organizations' impacted by American tariffs.
At that time, Burlington Chamber of Commerce president and CEO Terry Caddo said the organization strongly supports tax deferrals 'as there are numerous companies already seeing the impact of the tariff threat.'
In response to the staff report, Caddo said companies that are affected by tariffs 'need to find new clients, perhaps change products they manufacture and retool. This takes significantly longer than six months.'
The full report is available
on the City of Burlington website
.
