In response to the latest COVID-19 lockdown, the Municipality of Chatham-Kent is hoping to provide a little bit of financial help to local small businesses.
On Monday, council will vote on whether or not to waive late payment charges for current year tax arrears through July 31, 2021, for select small businesses.
According to the staff report, the measure is being recommended to help address the operating restrictions on businesses as a result of the latest province-wide stay-at-home order.
"Public health measures implemented through the COVID-19 pandemic have had a significant effect on business operations in Chatham-Kent and around the world," read the report. "Each sector of the economy has been impacted differently. Some sectors such as construction have posted record profits, while others such as food services, hospitality and entertainment have been disproportionately affected."
If the move is approved, staff is recommending that waiving the charges is done on a request basis. To be eligible, businesses must be able to demonstrate a loss of operating income as a result of pandemic restrictions, operate on a property that is in the commercial or industrial tax class and have an assessed property value of $2-million or less.
Applicants would also have to complete a survey to demonstrate how their business operations have been negatively impacted by the pandemic.
Administration is also reminding all small business owners to access the financial assistance that is being offered by upper-levels of government and to contact the local economic development department if they need help applying for government support programs.
"Financial services will continue to monitor public health restrictions and economic conditions," the report stated. "If conditions warrant, financial services will return to Council in the coming months with further recommendations to provide further relief."
The cost to the municipality of waiving late payment charges would depend on how many commercial and industrial property owners take advantage of the offer. According to the staff report, it's expected that the expenses can be managed within the 2021 variance.
