Whereas the COVID-19 pandemic has brought unprecedented public health challenges to Canada which has resulted in a slowdown of the Canadian economy and has created significant financial pressures to most industry sectors; and,
Whereas this unprecedented environment of economic uncertainty has directly and immediately impacted the hospitality and tourism sectors, with hotels experiencing record low occupancy rates driven in part by the closure of international borders, reduced business workshops and conferences combined with lower consumer travel confidence; and,
Whereas the uncertainty of recovery timing and the expectation that a full recovery may take several years, it is imperative that the provincial government provide immediate measures to protect and assist Ontario’s Hotel Industry so they can remain resilient and
viable during this uncertain time; and,
Whereas the COVID-19 pandemic had prompted the Province of Ontario to postpone the 2020 Assessment Update, and further directed that all Ontario property assessments to be levied upon for the 2021 tax year, continue to be based on the fully phased-in assessment amounts utilized for the 2020 tax year; and,
Whereas the current property assessment values of hotel properties do not represent the current negative financial impact of COVID-19 and the substantial decrease in revenue experienced by Hotels, which will result in inaccurate property assessments and significant property tax burdens moving forward into the 2021 taxation year and beyond; and,
Whereas Markham Council through the Destination Markham Corporation is in the midst of launching several programs and strategic initiatives to support the reopening and recovery of the tourism economy with the goal of increasing Hotel overnight stays,
Now therefore be it resolved:
- That Markham Council requests the Province of Ontario work with local municipalities to develop immediate options which could assist the Hotel Industry with mitigating the significant financial impacts resulting from the COVID-19 pandemic; and,
- That these options include but not be limited to the following:
- Requesting the Municipal Property Assessment Corporation (MPAC) undertake a review and re-evaluation of all Hotel property assessments prior to the issuance of the 2021 final tax bill by Ontario municipalities; and,
- Requesting the Minister of Finance consider removing the education portion of the property taxes for Hotel properties in Ontario for the 2021 taxation year, and,
- Requesting the Minister of Finance consider developing a tax relief program to assist Hotel properties with the record low occupancy rates and limited revenue potential during this unprecedented time; and,
- Be it further resolved, that a copy of this resolution be sent to:
- The Honourable Doug Ford, Premier of Ontario;
- The Honourable Rod Phillips, Minister of Finance;
- The Honourable Steve Clark, Minister of Municipal Affairs and Housing;
- All Members of Provincial Parliament in the Regional Municipality of York;
- All Council Members of the Regional Municipality of York;
- All Municipal Property Assessment Corporation (MPAC) Board of Directors;
- Nicole McNeill, President and Chief Administrative Officer, MPAC;
- Carmelo Lipsi, Vice-President, Valuation and Customer Relations and Chief Operating Officer, MPAC; and,
- Greg Martino, Vice-President, Valuation and Assessment Standards and Chief Valuation and Standards Officer, MPAC.