Tax ratios are the relative tax rates applied to different property classes compared to the residential rate. If commercial property is taxed at a ratio of 2:1, commercial properties pay twice the rate applied to residential properties of equal assessed value. Tax ratios allow municipalities to distribute tax burden between property classes, often placing higher burden on commercial and industrial properties. Provincial legislation may cap ratios to prevent excessive commercial taxation that might discourage business investment. Tax ratio decisions involve balancing considerations: businesses benefit from municipal infrastructure and services (justifying higher taxes), but excessive commercial taxes may harm competitiveness. Residential ratepayers benefit from commercial taxes reducing their share, but also as employees and customers of local businesses.