The province has shot down an idea out of Toronto city hall to add a municipal sales tax to city-bought goods.

Municipal Affairs Minister Jim Watson told CTV Toronto On Thursday he will not give the city the power to introduce the tax.

The idea to introduce a new tax was one of many touted by city Budget Chief Shelley Carroll in a report going to Toronto's Government Management Committee for debate on November 9.

"Every other major city in the world have tools that we don't have," Carroll told reporters, giving Chicago and New York as examples.

"I'm not discussing exact percentages because I'm not making a request to Minister Watson right now. I'm making a request to the people in this city who want to discuss its future in an election year."

Among the recommendations were several increases to user fees, including a $50 charge for residents to set up an account to pay their property taxes.

"I'm speechless," said Toronto Coun. Denzil Minnan Wong. "We have a spending problem in city hall and (Carroll) should realize that first and foremost."

But the report says the new user fees and fee increases will guarantee the city an extra $1.95 million in revenues in 2010 -- funds that will help Toronto tackle a huge budget shortfall.

Other suggestions in the report are:

  • an administrative fee of $35 to reflect a change of ownership on existing utility accounts
  • an increased charge for those who want a copy of a tax receipt from a prior year (from $6 to $15)
  • an increased charge for people paying parking tickets over the phone or Internet (from $1.50 to $2)

All new user fees would come into effect Jan. 1, 2010.

In addition, the TTC is considering an across-the-board fare boost, and there is also at tax on billboards under consideration.

"There are additional taxes -- a tax upon a tax upon a tax," Minnan-Wong said. "We don't need more taxes in this city. We need smarter spending."

Coun. Doug Holyday said he does not support the price increases, especially while Toronto is trying to recover from an economic recession.

"That's the last thing we need at this time," he told CTV Toronto. "I appreciate that they've gotten themselves into a hole but the way to get out of the hole is to cut the spending."

With a report from CTV Toronto's Janice Golding and files from CTV Toronto's Paul Bliss