A downtown restaurant is charging customers a small “price adjustment” fee to help deal with increasing property taxes on Yonge St., which has many small businesses in a panic.

Popeyes Louisiana Kitchen on 645 Yonge St. has started charging customers an extra flat rate of 35 cents per transaction, which management hopes will offset the rising property taxes on their strip.

Business owners on the street are facing hikes of up to 100 per cent or more, according to their 2017 property assessments. The amount was reassessed in September and reduced for some buildings after many owners began protests and held meetings with city councillors.

The Municipal Property Assessment Corporation, which assesses the property values for all buildings in Ontario, slashed the property tax increases by up to 70 per cent for buildings that are a part of the Yonge Street Heritage Conservation District Plan, between Bloor and Carlton Sts., where development is difficult to carry out.

“As part of the valuation process, our assessors reviewed each property on an individual basis in light of the heritage designation and sales information,” said MPAC spokesperson Cathy Ranieri-Sweenie in an email. “On average, reductions ranged between 40 to 50 per cent for the affected properties.”

Many owners affected by the reassessment say that the new rates are still jeopardizing their businesses.

“It’s like telling someone, ‘I’m taking away all your oxygen but here, I’ll let you have three breaths a minute,’ ” said George Giaouris, owner of Northbound Leather Ltd. “Am I supposed to feel relief?”

Giaouris, 54, said that after paying $4,000 per month in property taxes for 2016, he was asked to pay double that when his 2017 assessment came in.

Giaouris said he hasn’t received the reassessment for his property yet, even though many of his neighbours got theirs in September. Some neighbours, he said, had their tax increase go down from 111 per cent to 25 per cent for 2017.

Sanjoy Kundu, a landlord and owner of costume shop Theatrics Plus, said he paid $20,000 in property taxes last year. His initial assessment for 2017 asked him to pay close to $40,000. The new assessment, which reduced the property tax increase by 50 per cent, expects him to pay $30,000.

“I don’t want to have to close down but things are getting very difficult for small businesses on the street,” Kundu said. “It’s unfair.”

The problem, critics say, stems from the way in which the property is assessed by MPAC. The assessments, done every four years in Ontario, are based on the potential value of the land and “best use” rather than its actual use. Small businesses, in places such as Yonge St., are expected to pay similar property tax as if they were to develop a 40-storey condo.

For heritage buildings and small businesses using a property for its “best use” is almost impossible, Kundu said.

The price adjustment at Popeyes is one of several changes businesses on the street have been forced to make to deal with the property tax hikes, said John Anderson, president of the Yonge Street Small Business Association.

The House of Lords hair salon recently closed after 51 years, with the owner blaming the increase in property taxes.

Other businesses, Anderson added, have let go of employees, raised prices or are staying open longer.

“It’s only 35 cents right per person but it’s all common sense, where are you going to come up with all the extra money?,” said Anderson, owner of Morningstar furniture shop. “It’s a hard life on Yonge St. when taxes are just wiping everyone out.”

Giaouris said that a fee adjustment would not be possible for his shop.

“How much more am I supposed to ask from a client or a customer?,” he asked. “They are already giving me their business, how can I ask for more?”

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Many of the customers at Popeyes the Star spoke to didn’t notice the change on their receipts.

Patrick Williston said that although he is okay with the change at Popeyes, he would have preferred if they had let the public know before hand.

“It’s the closest location to me so I’ll probably still be coming here regardless,” he said.