LAURIE WEIR
SMITHS FALLS — Town council has decided to hold off on adopting a new provincial tax program that would cut property taxes for affordable housing units by as much as 35 per cent.
The optional subclass, introduced under Ontario Regulation 73/25, applies to multi-residential buildings that meet affordability criteria and are backed by long-term agreements. To implement it for 2026, municipalities must pass a bylaw by Sept. 30, a step council agreed not to take for now.
Treasurer Paul Dowber presented the report Aug. 25, calling the subclass “a one-way project.” Once enacted, he said, municipalities cannot opt out.
“I really wanted to come back and provoke a discussion, find out if council is interested,” Dowber said. “We have a couple more meetings before the deadline if council wished, so I can bring more information back.”
Dowber said while the maximum reduction is 35 per cent, municipalities could choose a lower rate. But any discount would shift costs onto other classes. A 35 per cent reduction would mean about $32 more a year for the average household, while commercial properties could face increases of $110 to $150 depending on assessment.
Mayor Shawn Pankow told councillors he was reluctant to commit to a permanent tax break that would largely benefit Lanark County Housing, which owns most of the affordable units in Smiths Falls.
“I’m very supportive of affordable housing,” he said. “But bringing this into place today binds all future councils to provide this relief. Ultimately, it would save the county money, but our ratepayers would end up picking up the slack.”
Pankow said the town’s existing Community Improvement Plan (CIP) offers a more flexible tool for supporting affordable projects, pointing to the Carebridge apartment development on Chambers Street, which received tax relief through the program.
“That tool is still in our toolbox,” the mayor said. “Future councils can use it when new projects come forward, rather than being locked into a blanket program.”
Coun. Chris McGuire agreed: “If all the municipalities in the county were passing a similar bylaw, maybe it would be fair. But for now, I think the CIP is the better tool.”
Coun. Peter McKenna said he was initially open to the idea but grew hesitant after hearing the mayor’s concerns.
“We have a significant public housing stock here,” he said. “Everybody would benefit in the county, but our ratepayers and renters would end up paying disproportionately. I’d like to keep talking with the county about it.”
The mayor noted that county-owned buildings already receive municipal services such as garbage pickup, policing and recreation.
“I think maybe we just sit for a little bit,” Coun. Dawn Quinn said. “It doesn’t mean we’re saying absolutely no. But let’s not jump too fast.”
With consensus around the table, the matter was left as received information, though council left the door open to revisiting the idea later, depending on discussions at the county level.
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