45 Toronto live music clubs will receive $1.7 million in tax relief, says Mayor Tory
TORONTO, ON., Aug. 20, 2020 — Today, City of Toronto Mayor John Tory announced that 45 live music venues will receive a combined $1.7 million in property tax relief to support Toronto’s live music industry and address the unprecedented challenges that are threatening live music venues across the city.
Mayor Tory made the announcement at The Cameron House, one of the 45 live music venues that will receive this urgently needed target relief program.
“The expansion of this program to include live music venues is one way in which we can further protect the cultural vibrancy of our city,” said Mayor Tory. “The music sector in Toronto has been heavily impacted by the COVID-19 pandemic. By providing relief to music venue owners and operators we can ensure that they have a greater chance of surviving and staying open,” said Tory.
The Mayor was joined by Deputy Mayor Michael Thompson (Ward 21 Scarborough Centre), Chair of the Economic Development and Culture committee, Night Economy Ambassador and member of the Toronto Music Advisory Committee as well as Councillor Joe Cressy (Ward 10 Spadina-Fort York) and Chair of the Toronto Music Advisory Committee.
Toronto’s live music venues contribute greatly to the city’s cultural, social and economic fabric. These venues require critical support in the face of ongoing pressures that have been intensified by the COVID-19 pandemic.
At its July 28 and 29 meeting, City Council adopted a bylaw to add 45 eligible live music venues to the Creative Co-Location Facilities Property Tax subclass, including Burdock, The Cameron House, The Garrison, Horseshoe Tavern, Lula Lounge, The Painted Lady, The Phoenix Concert Theatre and Relish Bar & Grill.
“This targeted assistance program comes at a crucial time for venue operators who were already struggling for survival before COVID-19 hit,” said Tracy Jenkins, Co-Artistic and Executive Director of Lula Music at Lula Lounge. “The inclusion of live music venues in the Creative Co-location Facilities tax subclass signals that the City of Toronto considers music venues as partners in creating culture and recognizes that venues contribute to the social and economic development of our neighbourhoods,”said Jenkins.
The 45 live music venues will realize an estimated $1.7 million in combined tax relief – $0.92 million for the municipal portion and $0.78 million for the education portion of their combined property taxes. The tax reduction will be absorbed within the City’s overall commercial property tax revenue stream and will not impact residential property tax rates.
On May 28, City Council expanded the Creative Co-Location Facilities Property Tax Subclass to provide property tax relief for live music venues. As a result of this decision, properties that meet specific criteria are eligible to receive property tax relief of up to 50 per cent for the qualifying areas of the building.
Immediately following this expansion in May, the City began accepting applications from live music venue operators. The deadline for applications was June 19.
This relief measure will be implemented through the final supplementary property tax notices that will be issued in the fall.
City staff will analyze the impact of this cost-saving measure for live music venues and report to Council in 2021. This measure is intended to remain in place beyond this year to support the long-term viability of Toronto’s live music sector.
The Creative Co-Location Facilities Property Tax Subclasses were established by City Council and the Province of Ontario to support the affordability and sustainability of cultural and creative spaces in Toronto. This tax relief mechanism was first made available in 2018 for qualifying properties acting as creative hubs with creative tenants. In 2019, the criteria were expanded to include membership-based co-working facilities for creative workers and enterprises.
More information about the inclusion of live music venues, including eligibility criteria, is available on the City of Toronto website.