Commercial Property Tax???

[Woodsy]

Hello there,

I am not currently a daycare provider out of my home, but it is something I am looking to do in the near future... not likely until 2015, as we are planning baby # 2 and would like toget that out of the way first.

baby # 1 is currently in a home based daycare, that is registered as a business.

My question is, the home based daycare that my child attends pay commercial property taxes... the daycare is increasing rates to cover this cost, so I am curious, as I cannot find the infromation, does an unlicensed home based daycare, that is registered as a business, in Ontario, require to be zoned as a commercial property and pay commercial property tax?

Is this different depending on the city that you live in?

[Crayola kiddies]

I am in Ontario ...I am a home based daycare ...I am not with a licenced agency but I do have a business licence for income tax purposes... I have a daycare rider on my home insurance. I am zoned residential not commercial and I do not pay commercial property tax.

[playfelt]

Are you sure it is property tax? It is possible that she has had to go with a commercial liability policy as it is getting harder and harder to get an add on to a home policy. There is for sure a significant increase in cost to the tune of up to $1000 a year and passing the cost onto parents is necessary.

[Busy ECE mommy]

My thought was the same as Playfelts. I bet it is commercial liability insurance versus a ryder on the home policy, and not truly commercial property tax. It could easily cost an extra $1000-1500 a year over a regular home policy with a ryder.

[Woodsy]

Thank you for the quick replys!

I guess the trick to opening a home based unlicensed daycare is to find the proper home insurance...

If you cannot locate a home insurance company that covers the daycare children, then you have to get commecial business incurance? which is much more costly from what I am understanding?