City of Toronto Proposes Double-Digit Property Tax Hike to Address $1.8B Budget Gap
The city has announced a potential property tax increase of 10.5 percent as part of the first proposed budget of Mayor Olivia Chow’s tenure. The city says it may also impose another 6 percent hike as a “federal impact levy” if the federal government doesn’t provide Toronto with $250 million toward refugee housing, totaling 16.5 percent. Ms. Carroll told reporters that this ultimatum is the best way to get the federal funds and not so much a “threat,” but “an invitation to come to the table.” Ms. Carroll also mentioned that budget talks will conclude on Jan. 26 and the federal government must respond by then. Federal Finance Minister Chrystia Freeland said on Jan. 10 that the Liberal government is already supporting Toronto.
When asked about how the city justifies a large hike as Torontonians struggle through hard economic times, Ms. Carroll emphasized the need to deliver services during hard times. She added that the city attempted to find efficiencies and is struggling without squarely hitting front-line services. For the average homeowner, she said the tax hike would amount to $30 per month, about $1 per day. The proposed budget has already received harsh criticism from the Canadian Taxpayers Federation (CTF), urging city councillors to oppose a large residential property tax increase.
CTF Ontario Director Jay Goldberg mentioned that the tax hike would create a financial burden for families already struggling with rising costs for necessities like groceries and home heating. According to the CTF, this proposed increase would be the largest since Toronto’s amalgamation in 1998. Toronto’s Operating Budget is $17 billion, and includes funds from the New Deal agreement with the provincial government. The New Deal agreement between Ontario and Toronto amounts to $1.2 billion in operating support from the province focusing on transit and shelter projects, and $7.6 billion in capital relief, including “uploading” the Gardiner Expressway and Don Valley Parkway highways to the province. Ms. Freeland also mentioned Toronto’s partnership and support from the federal government
