The non-residential tax rate is the property tax rate applied to commercial and industrial properties, typically higher than residential rates. In many municipalities, non-residential rates are 2-4 times higher than residential rates, based on the theory that businesses benefit more from municipal services, have greater ability to pay, or should contribute more to community infrastructure. Provincial legislation often sets maximum ratios between residential and non-residential rates. Critics argue high non-residential rates discourage business investment and job creation. Some municipalities have reduced non-residential rates to improve economic competitiveness. Tax rate decisions balance revenue needs, economic development goals, and fairness considerations.