’80 cents extra a day, folks can afford it,’ Chow told reporters Wednesday
In a landmark decision that marks the city’s largest property tax increase in over a quarter of a century, the Toronto City Council has greenlit a significant hike in property taxes, coupled with a $20 million boost to the police budget. This move, sanctioned during a special budget meeting held on Wednesday, has stirred varied reactions across the city, signaling a pivotal shift in Toronto’s financial landscape.
Mayor Olivia Chow, who proposed the 9.5% residential property tax increase, assured residents that the additional cost, which equates to roughly eighty cents extra per day, is manageable for most. For those who might find this increase burdensome, the city has put forward tax cancellation and deferral programs aimed at easing the financial strain. Breaking down the increase, it comprises an 8% rise in property taxes and a 1.5% increment in the city building fund levy for residential properties.
A notable aspect of this budget is its intent to shield renters from the brunt of the increase. According to Mayor Chow, at least half of the tenant population will not see their rent escalate as a consequence of the newly passed budget. This move is part of a broader strategy to stabilize and redirect the city’s financial trajectory, away 1.8-billion deficit that the current administration inherited. Mayor Chow described the tax hike as a crucial step towards placing Toronto back on the path to financial recovery and sustainability, emphasizing the initiation of a journey towards halting the decline in city services and changing the city’s direction for the better.
Despite the optimistic outlook presented by Mayor Chow, the tax increase has not been met with unanimous approval. The introduction of the “strong mayor” legislation by Premier Doug Ford’s government, which grants the mayor the power to veto any budget alterations made by the city council, has been a point of contention. However, Mayor Chow has pledged not to use this power to override council decisions, aiming for a more collaborative approach to governance.
The 2024 budget outlines an operating budget of $17.1 billion and a 10-year capital budget and plan amounting to $49.8 billion, marking a significant investment in the city’s future. This budget is described as the beginning of a multi-year strategy designed to achieve financial stability and sustainability for Toronto.
Yet, not all council members are in agreement with the budget’s direction. Councillor Brad Bradford voiced his concerns, highlighting the timing of the tax increase amidst rising living costs, including groceries, fuel, rent, and interest rates. He argued that the tax hike would exacerbate the cost of living in Toronto rather than alleviate it, expressing skepticism about the promised improvements in city services.
This tax increase signifies a pivotal moment for Toronto, promising to pave the way for enhanced city services and infrastructure. However, it also raises important questions about affordability and the balance between fiscal responsibility and quality of life for Toronto’s residents. As the city embarks on this journey, the effectiveness of these measures and their impact on everyday life will be closely watched by all stakeholders.
Canada Housing Market 
Leave a comment