Toronto residents are bracing for a possible 10.5% increase in property taxes, marking the largest surge in recent history.
The proposed $17-billion operating budget, unveiled by city officials, comes less than a year after Mayor Olivia Chow’s election. Her opponents had previously criticized her for potential tax hikes during her campaign, while Chow emphasized assessing city needs before determining taxes.
The 10.5% uptick comprises a 9% rise in property tax rates and a preplanned 1.5% increase in the city-building fund, allocated for transit and housing. Similar increases have been witnessed in cities across the nation, but they usually don’t go as high.
Sponsored · Selkirk Copper Mines
Toronto’s budget committee said that the process started with a $1.78-billion shortfall, equivalent to 10% of the overall operating budget. Measures like city-found savings and funds from the “new deal” signed with the province in November managed to reduce this gap.
The proposed 9% tax increase would further close the deficit by $380 million, but an additional $250 million is crucial to fund approximately 4,300 beds for refugee claimants.
Budget chief and councillor Shelley Carroll emphasized the need for a federal commitment to provide this funding by January 26. Failing which, she proposes adding a 6% “federal impact levy” to tax bills.
Mayor Chow is expected to present a revised budget in early February, allowing public commentary. However, Carroll hinted at limited room for change, citing the city’s struggle to recover from years of underfunding. She emphasized the importance of the federal government meeting its responsibilities, stating, “When times are tough, that is precisely when people need to be able to count on their city to deliver.”
“This is the staff budget,” Chow told reporters on Wednesday. “You will see my budget on Feb. 1, I think it’s important to listen to the people of Toronto and I look forward to them participating.”
Information for this story was found via The Globe and The Mail, Global News, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
