Province says no to T.O. municipal sales 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

Comments are now closed for this story

Ken S
said

Excellent idea. When half the population has fled the city, council will not need nearly as big a budget to operate.

KB in GTA
said

If the city wants to increase revenue, why don't they charge the same amount for property taxes as is charged in the 905 area?

A 2000 sq ft home in York Region pays ~ $4000/yr. some of which is funneled to TO. Same size home in Rosedale ~$1800/yr.

Imagine the financial freedom that the city would have if they woke up to the realization that the people who live in TO should have to pay their fair share, rather than York Region and the other surrounding regions subsidizing them.

DON
said

Well i guess not all the people in TORONTO are nuts.Just a few.Why don't they collect a tax on their garbage to be hauled away.A lot of other places have to.May be that would help.

Gord
said

Municipal politicians in Peel, Vaughn and Durham must be smiling ear to ear today as they welcome those fleeing the City. However, this is a familiar tactic to gauge public opinion. Run the flag up the pole, leak to the media, have then jump all over it like a hungry Doberman on to a T Bone and fan the issue to garner ratings. If there's outrage, then the proposal is withdrawn,if no outrage then its implemented.

Whadda expect fellow hogtowners. Elect an NDP Mayor and a majority of councillors and then its spend spend spend.

SavPrato
said

Toronto does not have a cash problem, they have a spending problem. No other level of government (provincial or federal) has any incentive to "donate" funds to this city util it gets it's costs under control. This spend now pay later attitude is a recipe for financial ruin. The city should not concentrate on raising taxes, how about spending more wisely with accountabilty? Everything should be reviewed, including garbage costs and more cost effective measures taken. His blondness will keep trying to spend as much as possible knowing that he will not be up for another term (as if he ever had any chance to win on his record).

Edb
said

The more the People's Republic of Toronto screws up, the better housing prices do in Hamilton to accommodate the new class of economic refugees. Keep up the good work city council, how about throwing in a polar bear tax just for the heck of it.

Joel From North York
said

Why do people consistently think that Toronto residents pay less property tax than the 905 region. It all depends on how you crunch the numbers, so I can make it seem like Toronto residents are actually paying more...

The property tax rates are for residential locations and include education and city taxes:

Toronto property tax: City 0.60%, Education 0.25% = 0.85%

Oshawa property tax: Region 0.76%, City 0.74%, Education 0.25% = 1.76%

On the surface it seems as if Toronto residents are getting a huge tax break, but you have to consider the inflated prices for housing in Toronto, which is approximately 3x that of Oshawa. This means my 1 bedroom condo that costs $300k in Toronto would only be $100k in Oshawa. Ask yourself the question, do you receive 3x the amount of services in Toronto because our housing costs are higher? No. For the same square footage, the tax rate in Toronto is 3x 0.85 = 2.55%, which is higher than the suburbs.

On top of that it is the city's responsibility to maintain the DVP, Allen Expressway and Gardiner as they are municipal highways, where the province maintains all suburb highways, such as the 404, 401, 400, etc. It is the commuters from the 905 region that make use of the municipal highways in Toronto, so lets make them pay their fair share.

Rob2010
said

SavPrato: one couldn't agree more!

Shelley Carrol needs to go. Her spending priorities are out of touch with Torontonians, and she's even more out of touch with her own ward constituents.

Jeff
said

Why don't they tax Mayor Miller's new office and all the councillors? They all received new offices... why are they not taxing them for this?

Vic
said

Unlimited expenses,no ending debts. a city is going to fall which enriched Markham and Vaughan. People of Toronto will deeply memorize the legacy of former Mayor Mel Lastman and his old days.

brian in nl
said

Typical bureaucratic response to a budgetary deficit;increase taxes.Deal with the real problem: excessive expenditures.

kb in GTA
said

Joel from North York,

Yes, TO maintains their highways, but the inividual regions around TO also maintain the portion of the highways around and through their region.

It would be nice if TO paid ALL their welfare costs, but York, Durham, and Peel contribute quite a lot of money to cover your welfare rolls, but receive nothing in return.

Yes, you can spin your figures any way you want, but a $300K property in TO still pays less property taxes than a $300K property in the 'burbs. It's a fact, not fiction.

Bear Patrol Tax?
said

What's next...a bear patrol tax? These increased taxes are making it impossible for young couples or anyone to live in Toronto and enjoy it...

Matt
said

GET YOU HANDS OUT OF OUR POCKETS!!!

All you Miller minions on council: Enjoy your last 12 months in office!

Anne Gillis
said

What the heck is going on with all these damn taxes? I feel as if we are going through the alphabet!PST=PLEASE SAVE TORONTO,GST=GOD SAVE TORONTO!You put the two together and you get...HST=HELL SAVE TAXES!And now for 1 more...CST=CUSTOMER SERVICE TAX! It's bad enough we pay taxes as it is!Property taxes,Income Tax,Sales Tax...Good grief!The government is too damn greedy!When it comes to the weather,it's either...Rain or constuction!When it come's to life...It's death & taxes!I say ABSOLUTELY NO WAY TO MORE TAXES!

Buck
said

Miller and his council are spending our money foolishly. I hope Toronto Tax Payers remember this at election time. City Hall is out of control.

Matt
said

I'm sooooo glad I don't live in Toronto, hundreds of millions of dollars in debt and now Mr.Miller wants the Pan Am Games to come to Toronto. I heard the new Olympic Village is gonna cost about 1 billion dollars to construct. Where are they gonna get all the money for that? All I Can Say "START THE REVOLUTION".

Tony
said

Why not go bankrupt like GM